Common Misconceptions About M&A Explained – Part 3

This post is part of a series on common misconceptions about acquisitions I’ve encountered over the years as an advisor. Read parts one and two.

Misconception #3: Only the CEO and CFO Should Be Involved

Because of the confidential nature of acquisitions, naturally most company owners do not disclose their acquisition plans to the entire staff. However, limiting the internal M&A team to just the CEO and CFO may not be the best approach. Experience tells us its best to bring in leaders from across functional areas of the business to ensure a holistic process.

Leaders in sales, marketing, operations, finance, IT, etc. will bring in different perspectives essential for developing your acquisition strategy and for reviewing potential companies to acquire. For example, the CFO may wish to dismiss a prospect based on revenue, but your Chief Technology Officer may identify a growth opportunity with the prospect’s cutting-edge software. These varying perspectives make for a rich dialogue to help you find the best acquisition prospects. 

In addition, bringing your functional leaders onboard early in the process will make for smoother due diligence and integration because you will have the buy-in of your management team in developing and implementing your integration plan.

Don’t try to do an acquisition alone! Get your functional leaders involved to maximize your opportunity for success. 

Photo by Jopwell x PGA from Pexels, Public Domain