5 ways to prepare for the season of acquisitions

The past years have been great for mergers and acquisitions. Last year trillions of dollars

worth acquisitions took place and this is expected to continue as far as the situation of the

market is concerned. The companies have been continuously been struggling to reach the

next stage. This is a symptom of glut in seed funding in the past years.

Whatever you do, if you want to be prepared for acquisitions, you need to know that it takes

about 6 months to complete an acquisition. When you start, there will be done difficult steps

to take. Here are the 5 ways to prepare for the season if acquisitions :

1. Let key people know

The key people in your company must be intimated about the acquisition. It must not be like

they get to know about it out of the blue. It must not come as a surprise for them. They must

be ready for it wholeheartedly. There will be time when you need their signatures, therefore

building consensus is very important.

2. Forge relationships early

The best scenario is when you have an investor or a good buyer but you need at least 2

parties to have a good outcome. You should have someone to choose from. All the leverage

shifts on the buyers in this scenario. You must be able to forge relationships early and find

strategic investors and interested buyers. There are times when you have to walk off from

one good option because of certain problems. That is when other options come handy.

3. Adapt to a new vision

While talking to potential buyers, see what their vision is and whether or not does your

company fit into it. If the buyer has a new and better vision, you must be ready to adapt to it

and take the company forward.

4. Prepare to shift your day job

Going for an acquisition, it will become your day job. You have to be into it to complete a

successful acquisition. You have to reconcile with this fact. You will talk to many people and

a majority of them won't result in anything and you will have to be on terms with it.

5. Sort out your finances

You have to be realistic about what you have and what you need. Give yourself time to

administer the financial position of the company. The company must be in a position of

reasonable strength. Instability can instill panic in the organisation. So be prepared for

everything.