A successful deal is a win-win for both parties and can be tracked in many ways. Each deal is different, but there are some characteristics every successful partnership should possess.
Thoroughly prepared
Before you sit down at the negotiation table, it is important to prepare thoroughly. This includes researching the nuances of the market and identifying potential synergies. Understanding your counterpart’s goals, priorities, and motivations is equally important. Understanding the other side’s goals, priorities and motivations can help you gain more leverage and ensure that the deal is successful.
Be prepared for the unexpected
Deal-making can be unpredictable, and unexpected twists in the process may derail plans. Whether it is due to the sudden discovery of a regulatory issue, an unexpected lawsuit, or some other incident, it’s important for all parties to be prepared for the unexpected. This includes having a backup plan as well as an exit plan in the event the plan fails.
Identify the Key People
Buyers should be focused on retaining key team members from a company they are considering buying. Many acquirers fail to retain important talent, which can hurt the value of the company and hamper growth after an acquisition. It is vital to comprehend the culture of the target and its values to ensure that it is compatible with the acquisition company’s. This will help to ensure that the acquired business can continue to grow revenue, even after the transaction. It is not uncommon for a business that has been acquired to experience a decline in revenue after a deal. This is due to the fact that the team of the acquired company is focused on achieving the goals for revenue and synergies set before the acquisition.