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What Are The Top Factors You Look For In Making A Major Business/Company Acquisition?

What Are The Top Factors You Look For In Making A Major Business/Company Acquisition?

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When considering a major business/company acquisition what are the top 3 factors you look for in making a decision. Also what would you consider as a principal deal breaker?

Bruce Ecallaw: Popularity of the company, its financial record and how efficient are the current staff.

Christopher J. A. Williams:  Beyond the obvious math from due diligence, I would look at existing employee morale. Informal on the job talks at the lowest categories as a start, gives great insight into things that are wrong with the business model and how to repair. If the employees are generally unhappy, that’s a big issue in your success. The existing executive management team matrix is also a concern. Too often there are too many Chiefs and not enough Indians! Important too is the outgoing owners’ Philosophy in how that made the business successful. Having philosophical differences can affect the necessary energies and outputs. And of course, if business success was based on unethical business practices that would be a deal breaker if you are not prepared to do unethical, illegal, practices.

Ainsworth Savage : Excellent points Christopher J. A. Williams, but how do you get accurate information on some of these points?

Christopher J. A. Williams : Good point Ainsworth, but there is no scale or gauge when dealing with Human beings. What i will say, based on 3 decades + of experience in Corporate, Commercial and Industrial settings, is that regardless of what you think and believe. If 30 people tell you that your shoes are dirty, chances are they are dirty!! ~ Peace!

Onel T Williams Jnr : SCALABILITY. Cost of operations vs. profit earning. Growth potentials. Principal deal breaker would be how easily sustainable it is . aka are the inputs to operate easily replaceable ? Or does the business die when an input or individual steps away ?