Acquisitions are a critical business process that has major effects on growth. The outcomes of an acquisition can vary depending on how well the deal is carried out. Most successful Document Management acquirers follow the same set of steps that guide them through the M&A process.

The first step in the M&A process is to determine your motive for an acquisition. This will establish an outline for any subsequent actions and decisions. Acquirers with clear motives will avoid common pitfalls of acquisitions, such as chasing several targets, rushing to close a deal without doing due diligence, and spending too much for a business with a culture and a strategy that do not align with their values.

Once you’ve decided on your motivation The next step to do is develop detailed guidelines for identifying potential companies to target. This includes factors like focus on industry, geographical location, financial health and intellectual property aspects. The most effective M&A teams use a number of sources to identify potential candidates, from databases to online portals, and then improve their list to «A» and «C» deals.

Following a lengthy and difficult due diligence process the final step is to develop an organizational narrative. This is the narrative that will be told to clients and vendors as well as competitors, therefore it’s essential to make sure it’s a positive one. It’s important to also consider the impact an acquisition will make on your P&L, and balance account.