3g generation

Technology is a highly competitive sector. While there is a great deal of profit to be made, all that glitters is not necessarily gold and securing a much-needed deal or merger can be more difficult than it appears. Let us therefore look at seven strategies which are designed to aid you in the entire pipeline process.

Knowing the Company

It has been shown that the most lucrative deals were motivated less by growth and more by understanding how the company or acquisition in question would be able to unlock previously untapped markets. Thus, the synergy between any two firms should be completely understood.

Profit Versus Efficiency

Another feature of many successful deals is that they are focused upon efficiency and cost-cutting techniques as opposed to sheer profit alone. In other words, it is best to look towards any deal with a long-term perspective as opposed to its value in regards to the dollar, pound or euro.

Accountability

Many deals may fall through because in-house accountability has not been properly attended to. As opposed to leaving the decision-making process solely in the hands of a CEO or CFO, cross-channel communications and the inclusion of multiple stakeholders will help to address issues of transparency and any personal bias that may exist.

Newly Acquired Management

In many technology deals, the acquisition of a company will dictate that many of their senior staff will come across. However, this may only be for a short period of time; they are normally not contractually obliged to retain their position. So, it is critical to assess their importance, build solid relationships and have a plan in place should they decide to leave.

Modifying Strategies

Many companies already have in place certain paradigms that are designed to deal with mergers and acquisitions. However, these may not be entirely adequate for more complicated or unpredictable scenarios. It is therefore wise to develop an entirely new strategy that addresses the specifics of the proposal.

Due Diligence

Whether arising from the illusion that a larger company has kept its books clean or that "digging" deep may cause a deal to founder, some managers will not carry out the proper amount of diligence. On the contrary, it is ALWAYS critical to look at the specific metrics of a company before committing to any subsequent action.

Communication

This is a fundamental tenet that cannot be overstated. All stakeholders including management, third-party affiliates and employees must communicate effectively. Without having a clear understanding of shared goals, the deal may not progress in the most efficient manner. Perhaps more importantly, both parties may be entering into a commitment that neither is fully prepared for.