While 2016 hasn't been an explosive year so far for mergers, we've seen whoppers likeMicrosoft's purchase of LinkedIn, Anthem's proposed purchase of fellow health insurance giant Cigna, Charter's buy of Time Warner Cable, and a bid by Bayer AG to take over Monsanto.
Acquisition activity in the tech sector has remained robust, too. The Internet of Things space, for example, accounted for nearly two dozen mergers and acquisitions in the first four months of 2016, according to Strategy Analytics.
Many M&As are marriages of competitors, of course, so as acquisitions continue to take center stage in corporate growth strategizing, figuring out when the time is right to acquire a rival has become a crucial question for business leaders.
As I learned earlier this year when my company purchased another player in the cyber security market, there's a lot more than meets the eye to the decision and process.
Here are six lessons to keep in mind:
- Do it for the customers
- Don't go on fool's errands
- Aggressively solicit top customers' feedback
- Get things on paper right away
- Make sure the people and culture a fit
- Establish trust early
About the Author
Rami Essaid is the Chief Product and Strategy Officer and Co-founder of Distil Networks, the first easy and accurate way to identify and police malicious website traffic, blocking 99.9% of bad bots without impacting legitimate users. With over 12 years in telecommunications, network security, and cloud infrastructure management, Rami continues to advise enterprise companies around the world, helping them embrace the cloud to improve their scalability and reliability while maintaining a high level of security.Follow on Twitter More Content by Rami Essaid