Post Acquisition Checklist - What's next?
February 01, 2024
by a searcher from University of Houston, Downtown in Houston, TX, USA
Hi All,
I just closed on my first business acquisition. Putting together a master list of key actions to take prior taking possession of the business (post close) and critical items to execute during the training transition period with sellers.
Please send me a direct message if you have a master list I can guide myself with. Any input is truly appreciated,
Thank you, Searcher Community!
Below what I have so far:
Get Business Credit Cards
Set up New QuickBooks
Record your new debt liabilities.
Set up new Bank Account (checking)
Order Checks
Set up of Transfer Credit Card Services
Business (Liability, Property and Fire)
Transfer $51k worth of deposit and rent advance payments
Apply for fire Permit on Warehouse lease
Obtain Commercial Leases
Certificate of Formation LLC
Subordination letter for landlord
Sign FBOL Offer Letter
Collateral: Renata to pledge interest to lender
Assign Lender as Mortgage/Loss Payee
LLC Operational Agreement
Resolution Form
Term Life ($900k each)
Form 1919
Gift Letter from Enrique Cruz
Get EIN For Entity
Get Sales and Use Tax Certificate
Pick Accountant
Add yourself as an employee
Set up All ACH Transfers for Clients who pay by ACH
OSHA Inspection
Get Resale Certificate
Set-up Sales Tax Online account
Set-up EFTPS account Federal
Issue new Resale Certificates to any Vendors needing them.
Get new Sales Tax Certs from Clients
Have exiting Entity Create W2's for employees before closing out their accounts
Phone
Internet
Gas
Electricity
Water
Pest Control
Web / Email Hosting
from Massachusetts Institute of Technology in Tel Aviv-Yafo, Israel
here's the first response from GPT:
A post-acquisition checklist for a searchfunder can be crucial to ensure a smooth transition and successful integration of the acquired business. Here's a comprehensive checklist to explore:
1. **Legal and Compliance:** - Review and update legal documentation. - Ensure compliance with local and international regulations. - Transfer licenses and permits. - Address any outstanding legal issues.
2. **Financial Integration:** - Consolidate financial statements. - Implement a unified accounting system. - Align financial reporting processes. - Integrate payroll and benefits.
3. **Operational Integration:** - Assess and optimize business processes. - Align IT systems and infrastructure. - Consolidate inventory and supply chain management. - Evaluate and integrate production processes.
4. **Human Resources:** - Evaluate and integrate HR policies and procedures. - Communicate changes to employees. - Consolidate employee benefits and compensation. - Address any cultural differences in the workforce.
5. **Customer and Vendor Relations:** - Communicate changes to customers and vendors. - Assess and integrate customer relationship management (CRM) systems. - Negotiate and consolidate supplier contracts. - Optimize supply chain relationships.
6. **Marketing and Branding:** - Align marketing strategies and messaging. - Integrate branding and promotional activities. - Develop a unified marketing plan. - Update websites and marketing materials.
7. **Technology Integration:** - Evaluate and integrate IT infrastructure. - Ensure data security and privacy compliance. - Align software and systems. - Train employees on new technologies.
8. **Cultural Integration:** - Assess and understand the organizational culture. - Develop a plan for cultural integration. - Foster open communication between teams. - Address any conflicts or resistance.
9. **Performance Measurement:** - Establish key performance indicators (KPIs) for the integrated business. - Monitor and evaluate performance regularly. - Make adjustments based on performance data.
10. **Communication Plan:** - Develop a communication plan for internal and external stakeholders. - Address concerns and questions from employees. - Keep customers and vendors informed about changes.
11. **Risk Management:** - Identify potential risks and develop mitigation strategies. - Implement a risk management plan. - Ensure compliance with industry regulations and standards.
12. **Financial Analysis:** - Conduct a thorough financial analysis of the integrated business. - Monitor cash flow and working capital. - Evaluate return on investment (ROI) and profitability.
13. **Post-Merger Evaluation:** - Assess the success of the integration process. - Gather feedback from employees, customers, and stakeholders. - Identify areas for improvement in future acquisitions.
This checklist is a starting point, and the specific details will depend on the nature of the acquired business and the goals of the searchfunder. Adapt the checklist to suit the unique characteristics of the acquisition and industry.
from INSEAD in Warsaw, Poland
1. Get the hold of cash ASAP/ adjust delegations of authority as needed
2. Meet the team, as a group and one on one. Use the opportunity to learn about what they do and why, what motivates them, who they are beyond work, what would the keep/introduce/stop/improve in the business if they had time and resources, what do they need from you in the short/medium/ long term?
3. Learn the business - sit in the call centre, spend a week on the factory floor, go to see customers, learn the language your company speaks. it is OK to ask silly questions in the first couple of months, but not not for much longer than that
4. Decide on the top 10(ish) things you want/need to achieve in the first hundred days i.e., are there any urgent decisions that need to be progressed, what are the key risks at present and is someone making them their business, when is a good time to do a strategy refresh/value creation plan, do you have a plan to assess the team etc. --focus on those vs. admin staff (you can delegate those)
5. Document your observations and share with your Board/Investors - is this what you expected when you bought this business? Any surprises/disappointments? How does it change your plan of action? What do you need from them?
6. Be disciplined - schedule in time to think, step back and recharge. Every day, ask yourself whether you are working on the most important issues/ones that no one else can do.