The acquisition strategy
The most important strategic consideration is the size of the acquisition. The completion of smaller series should be considered in the beginning than the larger ones. This will help the acquirer to be trained from each of the successive acquisition so that he develops a significant experience. If the acquirer starts with a number of smaller firms, he can work on its acquisition skills remarkably.
The more liable strategic issue faced by the acquirer is the reactions of the competitors to an acquisition. This does not mean that the acquirer should back away from the acquisition because of the fears of competitors. The acquirer must be conscious of how the transaction will guide to a reformation of the aggressive environment in this industry. There are some cases where the buyer will intentionally back away from an acquisition, thereby leaving the competitor to acquire.
The value of merger and acquisition transactions lies in the execution. It requires real experience, comprehensible strategic objectives, technical M and A expertise and capable people who act as a strong base for M and A program. Successful strategic acquirers use process and discipline to avoid an M and A breakdown that will certainly impair and devastate shareholder, customer and employee value.
The approach of M and A focuses on supporting clients in developing efficient structure and discipline which include: