Making the decision to pursue a growth by acquisition strategy in any industry can be a complex and timely undertaking. Part of the initial growth by acquisition strategy involves the leadership team of the acquiring company to develop key criteria to help guide the selection of add-on acquisition targets. Establishing criteria and weighing the importance of each criterion is essential to lay a proper foundation and build a successful buy-side process. At its core, a proper acquisition strategy will help the acquirer evaluate the case-by-case operational and market synergies created by bringing together that specific buyer and seller.
Key criteria:
Size
Location(s)
Customer segments/industries served
Products/value-added services
Market footprint
- Geographic
- Online presence
Ownership structure and objectives
Management
Culture
Other considerations specific to Industrial Distribution:
Supplier and vendor relationships
Business model
Membership to buying-groups and trade associations
ERP system
If you are interested in learning more about how Pease Capital can help you craft your company’s growth by acquisition strategy please contact David Pease or Lizabeth Roth.
