Seven Mistakes that will ruin your Acquisition
Mistake #3 - To Forget about the Customer
The “All Customers are the Same” Syndrome
Many acquisitions are made to capture a certain segment of the market or a new market that, would otherwise take too long to reach organically. These types of transactions sometimes aim at spaces that are not directly related or connected to the acquiring company’s space or area of expertise. And for that very reason must be thoroughly analyzed from several angles to ensure that the new market can be served as well or better than before, and that the new owners will have analyzed strategically the synergies with the existing business. Maintaining the customer base (and the revenues from that base) while working on the other aspects of the strategy, is critical to the success of the transaction, however, the percentage of success is not always high. Business models differences, sales channels, customer support structures, pricing and payment terms, lead times, and innovation expectations are just some of the factors that may influence the rate of success. If these factors are not fully understood beforehand, or are ignored, failure is inevitable.