Risk & Reward
Growth through acquisition can be both an effective and efficient method of expansion for your business. But like all rewards, there are certain risks that come along with it. It is crucial that these risks are addressed properly to ensure a successful outcome. If not, not only can the acquisition fail, but often times it can cause irreparable damage to your company.
Here is a list of some of the more common risks associated with an acquisition:
- Rushing the process due to a desire to get an acquisition done quickly
- Becoming enamored with the target company and turning a blind eye to certain risk factors
- Expecting more synergies than are likely to be delivered
- Incomplete due diligence
- Overvaluing the target company
- Underestimating the complexity of post-closing integration
Experience, Planning, and Risk Mitigation
Extensive experience with acquisitions and its risk/reward profile allows Rabican Companies to provide substantial protection for its clients from the risks, while maximizing the realization of the rewards. The Rabican approach is based on a foundation of detailed analysis and planning. Most acquisitions are successful when they are a byproduct of a long term business plan, so proper planning is essential to the process.
Like Corporate Dispositions, Acquisitions are heavily reliant on proper time and planning for optimal results. If you’re thinking about acquiring a company or would like to simply learn more about acquisitions and whether it might be the right move for you, it’s never too early to start the process.
Contact us today to learn more.