I love using a targeted acquisition approach in conjunction with a business that has a clear strategy and strong organic growth.
Sentiment: POSITIVE
Seeking an acquisition from the start is more than just bad advice for an entrepreneur. For the entrepreneur it leads to short term tactical decisions rather than company-building decisions and in my view often reduces the probability of success.
In my world, historical revenue is the least interesting thing to consider in an acquisition strategy. The goal is to acquire technology that is on your product roadmap or people that fit culturally within your organization and help you execute on your roadmap faster.
I know a lot of companies that have a very well defined post-acquisition process. However, many of them don't take into consideration the dynamics and personalities of the acquiree. Instead, they assume that everyone will happily be assimilated.
The key to making acquisitions is being ready because you really never know when the right big one is going to come along.
We continue to look at accretive and synergistic acquisitions both in the domestic as well as international markets. Our emphasis, thus, will be on strategic acquisitions, and we will not be doing it just for the sake of making our name bigger.
Whenever you look at any potential merger or acquisition, you look at the potential to create value for your shareholders.
Ultimately, the goal is to use acquisitions to compress time on product development and get people on the team, especially in senior roles, who can help build out areas of the company they have experience in.
I have targets for business achievements; I do not have targets for acquisitions. Because if you have targets for acquisitions, you end up making compromises in terms of valuations, and you buy things because you have a target, and it is not good for business.
I think every acquisition is unique and different. The best strategy is to listen to the founders and follow their lead.
Successful enterprises are built from the ground up. You can't assemble them with a bunch of acquisitions.