By Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation
This is the 14th of a Series of short articles on “HOW TO BUY THE RIGHT COMPANY” They will be posted at one a week
You can easily get so caught up in the acquisition process itself that you delay proper planning of the takeover until after closing takes place. This would be a big mistake.
Successfully executed acquisitions require months of planning prior to closing, to assure a smooth transition.
Much of the preliminary work overlaps with a properly done formal due diligence–extensive evaluation of the company and identification of potential problems.
The remaining work, some of which may be obvious and some of which might require more problem-solving creativity, involves identifying the necessary changes and improvements that should take place and an assignment of due dates, budgets and people responsible for carrying out these changes.
A simple format is to create a short one-page action plan for each topic, identifying the issue, the action required, who is responsible, and when it will occur, along with a budget and expected results.
The acquisition action plan may be the single most important thing you can do to assure the success of your new company. It is viewed as an extremely critical component of the successful acquisitions.
The chief (principal) operating person must be involved in the process from the start.
Reference: “How to Acquire the Right Business”
by John Psarouthakis and Lorraine Uhlaner