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ASSESSING YOUR COMPANY
A. COMPANY ASSESSMENT
1. It is normally a good idea to assess your recent acquisition by performing a quick overview
of the existing customer base. You can do this by comparing the customer base before and after
the acquisition. You could also compare the purchase volumes to those before the acquisition.
Also compare the volume of complaint messages before and after the acquisition.
2. It is a good idea to compare the past acquisition company performance with that predicted in the
pro-forma business report. It would be productive to review the assumptions made in the original
acquisition plan to identify any differences in actual and projected performance. This will be
made easier with time as you will build up a better insight in the day-to-day workings of the company.
This will then enable you to work smarter not harder to correct any performance deficiencies.
3. Within the first 6 months of acquiring a company it is important to check with the major players involved
with the deal that everyone is getting paid as originally agreed.
4. One should ascertain the shareholders/owners opinion of the latest acquisition as it is important to
satisfy the needs of the shareholders as they are your bosses and they will ultimately approve or
disapprove your next acquisition, should you decide to take that course of action.
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B. BUYING ANOTHER BUSINESS
1. It is a good idea to review the overall process of mergers and acquisition if you plan to perform the
procedure on a regular basis or this feedback mechanism will help to make the next acquisition more efficient
and reliable than the next one.
2. When performing this feedback/leasing procedure it is useful to split the whole procedure
into 3 distinct steps:-
- The pre-acquisition planning stage.
- The acquisition stage.
- The post acquisition stage.
3. The pre-acquisition stage lays the framework within which the other stages occur and relates to no specific buyer.
This stage deals with the initial need for an acquisition.
4. The second stage, called the acquisition stage is the stage where you discovered the acquisition target company,
performed the due diligence, came up with the price and negotiated the terms of the purchase and finally closed the
deal. This second stage is very intensive and requires a lot of input from your attorney and
accountant.
5. The final stage, called the post acquisition stage is carried out after a successful acquisition. It is very important
that you spend time evaluating how well you and your associates handled the post close activities.
6. It is a good idea to wait at least a couple of months after your last acquisition, before your next acquisition,
simply to assess what you have acquired and also because it will take time to accumulate the necessary
finances necessary for another acquisition.
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