When a Colorado business looks to make a change and boost their profits through mergers and acquisitions, they may realize why advance planning can be so critical to success. In up to 80 percent of business mergers, predicted value increases do not live up to initial expectations. Sometimes, this could be due to unknown facts about the company that was acquired, but in many cases, these problems can be attributed to a lack of preparation on the part of the company leading the merger. Businesses seeking to integrate an acquisition should start their planning for the process long before the deal is completed, while they are continuing the due diligence steps before a contract is signed.
Experts note that the first 100 days of a merger can be a critical time to judge the potential of success. While this may seem like an extremely quick time frame, businesses can accomplish a great deal in their first three months after a merger so long as they are prepared. Companies should expect to see their value grow during that period. When positive results are not realized shortly after a deal, it may not take long for stagnation to set in.
A 100-day plan can include a range of actions and goals, including providing an outline of the tasks necessary to fully integrate the acquired business. However, it should not merely be a logistical outline. Instead, it should seek to set strategic goals for growth by laying out a road map for achievement.
By using specific metrics and targets, businesses can help lead their mergers and acquisitions to success. A commercial law attorney can be a critical part of the process of a business formation or merger. Legal counsel can not only draw up contracts that protect clients’ interests but also negotiate strongly to help get the best deal possible.