Sometimes the fastest way to grow your company is to buy another one. Successful acquisitions require three things: a clear objective, a proven process, and skilled execution.

The Roadmap to Acquisitions

Your company no doubt has a written process for hiring new employees. It spells out all the steps for advertising, vetting, interviewing, selecting and onboarding new people.

But do you have a written process for acquisitions?

Compared to hiring, an acquisition is more complex, costly and difficult to reverse. Yet most companies have no defined written process. This is why so many acquisitions needlessly fail.

Capstone has a detailed process for acquisition based on dozens of successful transactions. It's a process that has been developed, used and refined since 1995. You can benefit from our experience, by adopting the Capstone Roadmap to Acquisitions.

A Comprehensive Process

The Roadmap to Acquisitions is a systematic methodology designed to minimize the risk and maximize the rewards of an external growth program.

The strength of the process is that every component is fully integrated in a proven system, and is guided by agreed upon criteria and a clearly defined purpose.

Phase 1: Build the Foundation

This phase establishes the strategic basis for your future growth.

Phase 2: Build the Relationships

During this phase we select potential acquisitions and build the relationships leading to a deal.

Phase 3: Build the Deal

In the final phase we execute the deal and manage the integration of two entities.

Five Core Principles

Underlying the success of Capstone's Roadmap approach are five principles that have been tested and proven by years of experience:

  1. Have ONE reason to purchase a company: more than one reason leads to unclear decision-making.
  2. Select MARKETS FIRST, before selecting companies to acquire: this ensures a truly strategic approach.
  3. Focus on FUTURE DEMAND as a fundamental selection criterion: demand drives growth.
  4. Have MULTIPLE acquisition targets in your pipeline: deals can and do fall through.
  5. Focus on NOT-FOR-SALE companies to broaden your search: every company is for sale for the right equation.

There are many other ingredients in the Capstone recipe for a successful acquisition, but these five are among the most important.

Your Third-Party Advisor

Sometimes companies prefer to "go it alone" and conduct an acquisition process without the benefit of outside help. Here are some of the benefits you can miss if you choose this route.

An experienced third-party advisor, such as Capstone, can deliver the following:

To learn more about acquisitions,
call us at 703-854-1910.