5 Tips On Acquiring Your Competitor
Are you looking to acquire your competitor? On today’s episode, I am going to give you five tips about acquiring your competitor.
Can You Streamline Their Operations?
You need to be able to streamline their operations and integrate them into your own company. When two similar companies are blended together there needs to be an opportunity to reduce duplicate costs such as marketing, accounting, administrative and operations.
What Do They Have That You Don’t?
One of the main reasons you might acquire a competitor is to expand your customer base. A primary reason for a business acquisition is to get something you do not already have. Maybe it’s technical expertise or superior equipment or a complimentary product or they are firmly entrenched in a geographic area that you cannot enter.
What Extra Costs Will You Have?
Never assume that your competitor’s operating costs will necessarily be your own. As an example, your insurance policy may have vastly different rates than their policy because they’ve initiated more claims than you. Or maybe they have more liabilities than you have.
How Much Does Your Market Overlap?
A good type of competitor to acquire is one in a nearby market with very little overlap with your own company.
Are the People and Culture a Fit?
It's important for the merging companies to click. Take time to understand the other company's culture and values. If their culture is vastly different it will be unlikely to see the acquisition work.