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Merging and Acquisition - Thrive During the Acquisition Process

Be sure to do your due diligence during the acquisition process.

As the economy continues its unsteady recovery, some business owners may be looking for a way out by putting their companies up for bid. However, the acquisition process can be a difficult one to navigate from both the buyer's and seller's perspective, particularly because seven out of 10 acquisitions fail, as Eddie Pasatiempo of the Clarion Group tells Xconomy.

While he says failure can simply mean that the original goal of the deal is not met, the last of the three main acquisition components - picking the acquisition, negotiating the deal and merging the businesses - can be the most difficult as the buyer tries to get all the departments in the merged business to work on shared objectives.

For the seller, there are a few key things to remember, Pasatiempo says, including proper business valuation. Sellers should also weigh whether their companies or products are ready to be bought, if the business seems attractive and if it offers something to the market that a competitor couldn't.

For buyers, another potential trap is focusing on doing "good financial due diligence" while failing to measure the acquisition's talent, its competitors' strengths and the worth of its product. Rob Enderle, writing for Datamation, offers additional advice for a positive acquisition, saying that buying companies should spend time making the acquisition successful, as he says technology solutions provider Dell does, instead of trying to create a carbon copy of themselves.