Expert: Michael Riley, KPMG
What is happening in the industry with Acquisition?
- Increased uncertainty. Remaining in the status quo becoming harder and harder, profits are being squeezed.
- Many companies get it wrong (example Perspective) by not concentrating on the background of the company they are buying.
- Often post signing no one is there to focus on the company being purchased and how it will continue.
- Important to consider how the owner of the company is going to deal with the transition post signing.
- Important to have a Post-Acquisition Strategy in place before signing.
What are you trying to Achieve?
- Culture – think of the culture of the business that you are buying – what works for them/how to continue.
- People – think of the team of people you are buying, how will they work together.
- Going forward – before acquiring a company think about what changes are needed, what should really be focused on?
- When acquiring a company include a deeper level of honesty.
- Use a sales pitch that includes your expectations and the biggest challenges.
- Understand the objective of the seller.
- Advise the buyer what the plan is for the first six months post signing and how things will be organised.
- Be honest and upfront about exactly what your proposition is.
- If there is any bad news to be delivered – get it on the table early.
What should be in place when acquiring a company?
- Recommendation – ensure an External Programme Management team are in place to keep you on track with deadlines during the acquisition process.
- Discuss in detail at current client contracts.
- Discuss/look in detail at employment contracts and how to transfer to equivalent contracts in new.