Operating vs. Acquiring - What Occasional Acquirers Need To Know
For some companies, acquisitions are the center of their growth strategies. For others, acquisitions are an occasional strategic move.
Numerous studies show that frequent acquirers (those who spend at least 5% of their market value per year on acquisitions) have far higher success rates with their deals than occasional acquirers.
Douglas Yorke, of Rumson Acquisitions, recently shared his perspectives on the difference between running a company and successfully completing (and integrating) an M&A transaction.
According to Yorke, "the main thing that [occasional acquirers] don’t know is this: running a company is not like acquiring one, that merging two businesses is not the same as running one bigger one."
Simply put, running a company is an ongoing effort while merging a company is a finite activity.
Yorke concludes; "Acquisitions are definitely not business as usual … they’re not even business as usual on steroids. They are a terrific avenue for corporate growth but they play by a completely different set of operational rules. Follow those rules and you’re on the road to a win."
Follow this link to read Yorke's full post; "Running vs. Merging: What Occasional Acquirers Need to Know" on the Axial blog.
About Acquis Capital: Acquis Capital is a private investment fund that specializes in acquisition and project finance. Acquis invests in small public and private companies to fund acquisitions or other projects that create immediate tangible value. For more information please contact us or follow us at @MicroMnA.
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