Create a common process
Sourcing, screening, valuation, diligence, approval, closing, and integration should use consistent criteria while allowing for target-specific judgment.
Capture what was learned
Assumptions should be compared with actual performance. Integration problems, diligence misses, and synergy realization can improve the next decision.
Protect management capacity
A pipeline should reflect the organization’s ability to evaluate and integrate—not simply the number of available targets.
Questions for Owners
Questions worth considering
- What changed after the last acquisition?
- Where is the process dependent on one person?
- How many integrations can management support simultaneously?