Acquisitions can have significant effects on growth. The results of an acquisition can vary depending on how well the deal is carried out. The most successful buyers use an established set of steps to guide them through the M&A process.

The first step in the M&A is to define the motive behind the acquisition. This will provide a clear framework for all subsequent decisions and actions. Acquirers with a clear understanding of their motivations will be more likely to avoid common pitfalls associated with acquisitions like trying to pursue multiple targets, jumping into the acquisition before due diligence is complete, and overpaying for a company that is likely to be a poor fit in terms of both culture and strategy.

After you have determined your goal, the next thing to do is create detailed guidelines for identifying potential target companies. This should include factors like focus on industry as well as geographical location, financial health, and intellectual property factors. The most effective M&A teams make use of a variety of sources to determine potential candidates, from databases to online portals and then make their list more specific to “A” and “C” deals.

Following a lengthy and difficult due diligence process the final step is that site to formulate a narrative for the company. This is the story that will be communicated to clients, vendors, and competitors, so it’s important that it’s positive. It’s also important to consider the effect that the acquisition will impact your P&L and balance statement.