Finding the Right Business to Acquire: Building a Strategy for Successful Growth
Acquiring the right business is one of the most impactful decisions a company can make. Done well, it can accelerate growth, open new markets, strengthen capabilities, and create lasting value. But without a clear strategy, the acquisition process can quickly become reactive and misaligned with your long-term goals.
Start with Strategy
Before engaging with targets, it’s essential to define your acquisition strategy. What are you hoping to achieve? Are you looking to expand into new geographies, diversify your revenue streams, or gain access to proprietary technology? These strategic objectives form the foundation of your acquisition plan and help guide all subsequent steps.
Working with an experienced M&A advisor can bring structure and insight to this early phase. Your advisor will help refine your objectives and shape a focused, actionable plan. A strong acquisition strategy ensures that each opportunity is evaluated through the lens of your broader business goals, eliminating distractions and helping you focus on deals that truly fit.
Defining Your Target Profile
With your strategy in place, the next step is to build a target profile—a clear definition of the kind of company you want to acquire. This includes criteria such as industry, company size, customer base, and cultural fit. Your advisor will help you establish a workable range for financial metrics like revenue and EBITDA, ensuring that targets are both manageable and meaningful for your business.
It’s also important to define your non-negotiables. These are the limiters that rule out a potential acquisition from the start, such as poor financial health, regulatory concerns, or geographic incompatibility. By setting these parameters early, you prevent wasted time and increase the efficiency of your search.
Staying Disciplined, Remaining Flexible
No acquisition strategy survives contact with the real world without some adjustments. Markets shift, unexpected opportunities arise, and the right deal might not look exactly like what you first envisioned. The key is to remain strategically focused while allowing room for flexibility.
A good M&A advisor helps you navigate this dynamic environment. They provide ongoing feedback, refine your criteria, and help you evaluate deals not just on paper, but in context. This adaptability ensures you don’t miss valuable opportunities while staying aligned with your long-term objectives.
Positioning for Sustainable Growth
Finding the right business to acquire isn’t about chasing the biggest or most obvious deal. It’s about identifying the opportunity that best fits your strategy, enhances your strengths, and moves your organization closer to its vision.
With a well-defined strategy, a disciplined search process, and an experienced advisor at your side, you can pursue acquisitions with confidence—knowing that each step is aligned with your broader plan for sustainable growth.