Tip 12: Hansel & Gretel

The 12 tips of Christmas


Every year Orchard Growth provides 12 tips of Christmas. As ever we look forward to receiving your questions and comments as well as details of what you are resolving to do to create success in 2013 so don’t hesitate to get in touch on info@orchardgrowth.com.

Hansel&Gretel

 

 

The power of temptation. The house made of sweets. Who can resist? Certainly not two greedy children. Or perhaps they were normal children abnormally tempted. Acquisition targets are often as tempting as that house of sweets. I want that company! I want those sweets! You can see the similarities….

There are many examples of acquisitions that have destroyed value and it is believed that a majority fail to achieve their objectives, although most acquirers remain happy with their purchase. Nonetheless acquisitions remain one of the quickest ways for many companies to accelerate their growth and achieve their strategic aims.

Failed acquisitions are often assumed to be down to greed. And yet normal, sober, rational, analytical business leaders who show no trace of greed make equally bad mistakes.

Many acquisition problems are the result of poor planning and poor due diligence. In the case of Hansel and Gretel proper due diligence would have uncovered the witch. When was the house was built? Why were the materials used so unusual? Who actually owned the property?

Caveat emptor (buyer beware) is a good maxim for potential acquirers. Good planning and careful due diligence are essential actions for success. Get it wrong and indigestion and witch hunts will result – much like Hansel and Gretel……

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