Getting Acquired Checklist
Getting Acquired: What to do…?
Here’s a list of key questions to ask yourselves, in chronological order, as you move through the acquisition process:
1. Initial Reflection: Is This the Right Move?
Why are we considering this ‘event’?
What are our long-term goals for the business?
Are we prepared for the impact of selling X% of the agency?
Does this acquisition fit with our personal and professional objectives?
2. Valuation and Deal Structure
Is the valuation of our business fair? Does it reflect both current performance and future potential?
Have we had an independent valuation or advice to confirm the offer is reasonable?
What is the deal structure?
How will we be paid (lump sum, installments, or earn-out)?
Are there any performance-based earn-outs, and are the terms realistic?
3. Governance and Control
What influence will we retain post-acquisition, and what decisions will become be controlled by the acquirer?
Who will be on the board, and how will decisions be made?
What autonomy will we have to make operational and strategic decisions?
Will there be any significant shifts in our business direction or goals?
4. Cultural and Strategic Fit
Does the acquirer’s company culture fit with ours? How do they lead and manage?
What is their long-term strategy for our agency?
Are they planning to fully integrate us or leave us semi-independent?
Do we share the same vision for the future of the agency?
How does this acquisition impact our clients and service delivery?
5. People and Client Impact
How will this acquisition affect our team? What are their concerns and fears?
What is the plan for retaining key staff? Should we offer incentives or bonuses to ensure they stay?
How and when should we communicate this deal to our clients? What’s the key message?
6. Synergies and Operational Changes
What synergies do we expect (e.g., cost savings, tech integration, new systems)? Are they realistic?
What synergies do they expect? Are they realistic?
Will the acquirer implement new operational processes or systems? How will these affect our workflow and culture?
How quickly do they plan to integrate us into their existing business structure?
7. Legal and Financial Considerations
Do we have the right M&A, legal and financial advisors in place to protect our interests?
What are the tax implications for the business and us personally? Can we structure the deal in a tax-efficient way?
Are the terms around non-compete clauses, lock-ins, and warranties reasonable and fair?
What liabilities or responsibilities are we taking on post-acquisition?
8. Post-Acquisition Dynamics
What are the acquirer’s expectations for performance after the deal?
What KPIs or OKRs will we need to meet?
How will success be measured in the first 6-12 months post-acquisition?
What changes in our leadership role, involvement, or autonomy should we anticipate?
What is the integration timeline?
How can we ensure a smooth transition?
9. Exit Strategy
What is the acquirer’s long-term exit strategy? Do they plan to sell, merge, or take the agency public?
What are our own plans post-acquisition? Do we have a path to exit the business if desired?
Can we negotiate a buy-back clause or option to regain more control if needed?
10. Final Consideration: Personal and Professional Impact
How does this deal impact us personally: financially, emotionally, and professionally?
Are we comfortable with the level of control we’ll retain post-acquisition?
What will our role be moving forward, and does it fit with what we want in the next chapter of our career?
By following this sequence, you address most of the key aspects of the acquisition in the right order, covering both short-term and long-term implications. Good luck!