The mergers and acquisitions markets are super hot this year with blue chips like Pfizer and Comcast doing the rounds. Deal volumes have soared to over $1.75 trillion, the highest level seen since the Great Recession. But just because your company is cash rich and credit is cheap doesn’t mean you should go shopping to buy the first shiny object that catches your eye.
So how do you identify the companies worth buying; distinguish the fads from the trends? Should you put your trust in a first-time CEO? Do you tend to underestimate a company because it’s unknown? These are all questions that pop up if you are in the market.
Take some tips from CallidusCloud’s President and CEO Leslie Stretch who has successfully led eight acquisitions over the last 20 months to weave the unique and powerful Lead to Money suite, an integrated set of technologies that improve sales and marketing effectiveness. “Whether an entrepreneur is looking for his or her company to be acquired or interested in acquiring another firm, a thorough assessment of the enterprise in question is vital,” writes Leslie. Leave no stone unturned before you put money on the table.
According to Leslie, there are four guiding principles or 4 Ts that everybody should follow while evaluating companies. Curious to know what the 4 Ts stand for? Read the full text of Leslie’s article “The Art of Acquisition Comes Down to 4 Essential Variables” which was published in Entrepreneur.com yesterday.