For those who are or who have been involved in strategic acquisitions from the buyer’s side, can you describe how this function was organized in your company. (It would be helpful to preface your answer with the approximate size in revenues of the company, to give some context for the environment in which the structure made sense.) Specifically: Who (title) was responsible for identifying acquisition opportunities? Who did they report to? What resources did they use to do this (information services, databases, etc.), and how much did these resources cost? Was this a casual effort mixed in with other job responsibilities, or a was there a dedicated FTE position dedicated to it? Was scanning the landscape for competitors/potential bidders also part of the role?
From the buyer’s side, the function was organized by our executive team. Revenue of the company we were looking to acquire was $17 million, employing 15 employees in a foreign country to ours. The acquisition opportunity came about due to a history of crossing paths and originally approached by our CEO to their President in a more casual conversation. Once the acquiree began to entertain the idea, we began involving additional senior management. The efforts by all were mixed in with their other job responsibilities. Not much was done in the way of reviewing the landscape, although having not been part of the initial conversations, I cannot determine why. Having had the opportunity to participate in the process earlier on, I would have suggested more resources dedicated to the due diligence process. Although successful, I believe this transaction was an exception to the norm in situations like these.
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