For the service industry, including plumbing companies, gathering reviews is an important part of...
A traditional model of business acquisition involves the integration of one company into another — much like a hungry cat eating a mouse. But what if you could embrace a new approach toward acquisitions by transitioning your thinking from "takeover" to "partnership and extension of resources"? I find that this extension-of-resources approach can allow both companies to flourish. In this article, I'll explain how.
1. Negotiate with a relationship-building perspective.
Acquiring a company isn't like buying a car. Yes, you'll want to peek under the hood, but the goal should be to develop a positive working relationship. There are ways to make this relationship-building process authentic.
For example, in one instance, senior leadership was skeptical and resistant when I approached them about a potential acquisition. But instead of starting the discussion by pointing out how an acquisition would benefit both companies, I began by listening.
Ask for examples of their challenges. Are they having problems developing their team or expanding their customer base? These discussions can allow you to develop a list of actionable objectives that the sellers value. In turn, you can use this to develop mutually agreeable and beneficial objectives.
There is no such thing as a perfect business. Rather, your goal as a partner should be to align on opportunities and achieve mutual objectives that serve as a foundation for the partnership. I recommend that you ask yourself these questions: How can we structure this deal to benefit both partners? How can both companies coming together provide extended resources and greater success for all?
