Certain businesses come to a point in their lifespan where they begin to consider a merger or an acquisition. My company recently came to a point where we think an acquisition makes sense for us. So we’ve started down that road.
In my travels I’ve been a part of dozens of mergers and acquisitions both directly and indirectly.
The tech in your business is an integral part of how your business operates. It is also part of your company's culture for better or worse. If your tech is not right in your business and you’re looking to acquire I would recommend taking a step back and getting your tech right before attempting something as involved as an acquisition. My thoughts today are directed at those acquiring. So if you’re in the process of being bought or sold I’d skip today’s blog and come back tomorrow.
Part of the reason that you are acquiring is because your company is growing and because you’ve built something good. One of those things should be your technology and the intellectual property you’ve overlaid on those systems and applications that you run in your business.
One place I see companies fall down on through the acquisition process is in the integration of systems or more specifically the elimination of the acquired systems.
For example, I've seen situations where companies decide to leave an old accounting system in place because there's something in there they might need. I understand keeping the system available as an archival system for a period of time. But a line in the sand needs to be drawn and in my opinion right away on moving the acquired company onto your systems.
So many people are afraid to make a decision for any number of reasons such as politics, fear of offending somebody or confrontation. As a result the acquiring company and people involved suffer and pay the consequences. Sometimes for several years.
I think it goes without saying that the company you acquire needs to be brought onto your platform as soon as possible.
Obviously there’s more to this topic than meets the eye. Shoot me an email and I’d be happy to discuss your particular situation. The main kernel of think that I want to leave with you today is that - integrating the acquired company onto your platform and systems as soon as possible is a super critical part of a successful acquisition plan.
Make it a great day and I’ll catch you tomorrow on the blog.