The sale of your business will be the single most important choice of your life. Most business owners don’t know what they don’t find out about promoting a business.
Why, then, have even pleasant acquisitions that apparently satisfy this recommendation didn’t work out so often? We consider that managers can achieve insight into this question by wanting beyond strategic or organizational match to the acquisition process itself. Indeed, our research identifies three factors inherent within the process that can have an effect on the result. In mid-2006, the Jinling model was acquired in China, along with industrial amenities, sales community, worldwide operations.
The two sides, however, must finally clarify these elements of the agreement that remain ambiguous. If, after the acquisition, the parties’ interpretation of these factors is considerably different, relationships woven during the negotiating, together with fragile bonds of trust, may start to unravel. As trust breaks down, each father or mother and subsidiary managers might overreact and turn out to be involved in bitter disputes. The ambiguity that had helped to close the deal may turn out to be a source of problem and battle once the settlement is finalized. Finally, a company’s career development and different reward systems ought to provide incentives to make appropriate—and never simply any—acquisitions. It may still be tough to slow the momentum, even with adjustments in reward buildings.
Once a potential candidate is identified, managers are confronted with the very actual threat that one other company could purchase it. Indeed, transferring shortly … Read More
