First consider carefully what the reason could be for doing any acquisition. This will set the strategy, requirements and critical areas to look for and do due diligence. Here are some examples for typical reasons behind business acquisitions:
- To be a leader within a market segment.
- To stop a competition from being a leader within a market segment.
- To differentiate from existing market segments.
- To grow geographically to achieve other clients in present marketplace segments.
- To market products in an additional channel of delivery not presently served.
- To market different / completely new products in present routes of delivery.
- To obtain technologies, patent, or intangible asset.
- To become a purchaser within a fragmented however merging industry.
- To remove extra capacity within a developed or diminishing industry.
- To get a business design for instance a Software business, Artificial intelligence, or Membership Price.
- To get a business looking for transformation and reap the benefits of reorganizing, next selling.