What are you top priorities post-acquisition?
November 16, 2024
by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Dallas, TX, USA
Hi Searchfunder team,
I just completed my first acquisition. I am very excited and drinking from the "proverbial firehose." I will write a full post about the biggest challenges in my experience and lessons learned. But for now, I wanted to know:
1) What is your personal take (or list) of top-five priorities post-acquisition
2) Do you have any documents/links/references that you have used in the past?
3) Do you have any book recommendations? I am currently enjoying "The First 90 Days, from Michael Watkins"
Thanks,
from University of North Texas in San Antonio, TX, USA
Top Five Post-Acquisition Priorities
1. Immerse Yourself in the Business Culture and Team Dynamics Spend time with employees across all levels of the organization. Listen actively to their concerns, learn about their day-to-day challenges, and foster trust by being transparent and approachable. Employees who feel secure and valued during the transition are more likely to stay engaged and aligned with your vision.
2. Stabilize Core Operations Prioritize operational stability by reviewing workflows, identifying bottlenecks, and addressing immediate pain points. Ensure that service or product delivery remains consistent to reassure both employees and customers that it’s business as usual—even during a period of change.
3. Evaluate Financial Health Conduct a deep dive into the company’s financials, paying special attention to cash flow stability, outstanding liabilities, and potential areas for cost savings. If financial reporting processes need improvement, now is the time to implement tools or systems that provide accurate and timely insights.
4. Communicate Your Vision and Build Relationships Clearly articulate your long-term goals to employees, customers, and key stakeholders. Aligning the team around a shared vision fosters trust and builds momentum. Take time to build personal connections with major clients, suppliers, and partners—strong relationships are the backbone of any successful business.
5. Identify and Execute Quick Wins Look for small, impactful changes you can make right away to demonstrate your value as a leader and build credibility. These might include solving long-standing employee frustrations, streamlining minor processes, or making a visible improvement that aligns with your vision. Quick wins build trust and set the stage for larger, more complex initiatives.
Additional Ideas for Success
-Develop a###-###-#### Day Plan Create a detailed roadmap for your first three months to structure your priorities, measure progress, and stay focused on your goals.
-Enhance Leadership Capacity Invest in leadership development for yourself and your team. Strong leadership fosters stability, improves decision-making, and positions the business for long-term success.
-Foster Financial Acumen Across the Organization Educate employees about the financial health of the business and how their roles impact its success. A financially aware team is more likely to make decisions that align with your goals.
-Design Incentive Plans Aligned with Your Vision Whether it’s sales-focused bonus structures or team-wide performance incentives, tying rewards to the company’s goals can drive growth and engagement.
-Prepare to Sell (Even if You’re Not Planning to) Thinking like a seller helps you maintain focus on the financial health and operational efficiency of the business. This mindset will keep you disciplined in tracking performance and driving growth, whether you plan to exit or hold the company long-term.
-Establish a Feedback Loop Set up systems for ongoing feedback from employees, customers, and stakeholders. Regular check-ins help you stay ahead of potential issues and create a culture of continuous improvement.
-Benchmark Against Industry Standards Compare your business’s performance to industry peers. Understanding how you stack up can help you prioritize areas for improvement and spot growth opportunities.
This is an exciting chapter in your entrepreneurial journey, and you’ve already demonstrated your ability to take bold action by acquiring the business. Stay focused, stay curious, and leverage your team’s insights as you move forward. Congratulations again!
from Dartmouth College in Dallas, TX, USA
I have not completed an acquisition myself, but I have a fair amount of leadership experience. I am not going to pretend that my experience translates 1:1 in the ETA world, but I figured I could help provide some guidelines nonetheless:
- Remain humble. First impressions are going to be incredibly important in this initial phase. Remain confident, but eager to learn. You do not know more than your employees at this point. You know this. They know this. A frequent mistake for junior officers in the military world is going in and pretending as if you are the expert. This type of attitude gains no favors. At this point, it is important to remain a sponge and frequently seek information from your employees. It's okay to make it known that you are clearly trying to learn from them. Your employees will feel valuable (which they are) and much more willing to help you succeed,
- I'd encourage you to set up initial interviews with as many of your employees as possible. Naturally, you'll want to ensure that you have meetings with the folks you deem to be "decision-makers," but it is not a waste of time to chat with the individuals who truly make the show run - there is a high possibility that you will receive more candid feedback from more junior employees. This is your opportunity to ask everyone what they believe is going well, what is not, where do they see the most room for improvement, what is their perception of their responsibilities, etc.
- Be patient. Now is not the time to go in guns-a-blazing. You need to gain the trust and respect of everyone within the company before making any major decisions. To them, right now, you're just that young guy who thinks he knows what's going on; you're the outsider, and rightfully so. That is a reasonable impression. Truly take 6 months to a year to learn the business, get to know your employees, and strategize your next steps.
I know that's a lot of word vomit. Hopefully, some of it is useful. I'm in Dallas; let me know if you would like to connect sometime. Congratulations and best of luck!