4 ms·
There’s some major caveats that need to be detailed: - Acquisition price. The smaller the $, the quicker the process can be. - Who’s the champion. The higher
by alberth 4y ago
There’s some major caveats that need to be detailed:
- Acquisition price. The smaller the $, the quicker the process can be.
- Who’s the champion. The higher up in the org the acquiring champion is, the quicker the process can be. (Eg Zuck acquiring WhatsApp took just days)
- Regulated industry. If the acquirer is not in a regulated industry (Eg banking), the quicker the process can take.
- Competitor acquisition halo effect. Eg did Coke just acquire a Coffee company, that will put time pressure for Pepsi to do the same.
And just because an acquisition can be quicker, doesn’t mean it will be quick.
Also keep in mind, there’s a higher chance the acquisition will fall through than to actually complete. If the acquisition does complete, there will likely be an earn out period of 12-24 months.