8 Things You Need to Know about Mergers and Acquisitions in the ECM, BPM, & BPO Technology Sector

Consolidation in the ECM, BPM, and BPO sector has become commonplace. There are many reasons for this, but they all roll up into expanding organizational reach and capturing market share in what has become a highly competitive marketplace.

While there are nearly an infinite number of things to consider when acquiring or merging with another company, I've chosen the eight most important things you should bear in mind if you are considering this option to grow your ECM, BPM, or BPO technology company.

1. Maintain your focus on your business.

   Acquisitions can be time-consuming and distracting. You don’t want your management to have their attention taken away from running their business and allow performance to be affected. M&A activity is like a magnet for management attention. Ensure this does not happen.

2. Begin with the end in mind.

   I hope Stephen Covey would excuse me for borrowing this one, but it is so important. You need to have a clear vision for what the acquisition needs to achieve for your company before you start your search. Many executives make the mistake of looking first and then seeing how the company could possibly fit. Companies that acquire in an opportunistic manner have proven worse results for post-acquisition success.

3. Ensure you have a clear understanding of who and what you are.

   By this, I mean understanding who and what type of company you are currently. Where are your strengths? What is your current positioning? What is your value proposition?

4. Have a true and clear view of your competition.

   When planning an acquisition, it is no time to overstate your strengths with a Pollyanna view of your world.

5. Have a mergers and acquisition strategy that fits with your business plan.

   Surely, you would say this is common sense? I would agree, but having an M&A strategy that fits the company’s business plan is not as common as you may think.

6. Create a set of SMART acquisition objectives.

   Be Specific, make them Measurable, Agreed upon within your team, Realistic, and within a Timeframe.

7. Acquire with the insurance of knowledge and experience.

   Many acquisitions fail because they try to operate in areas that they do not know well, or they have insufficient data.

8. Don’t suffer from keyhole vision.

   Ensure that you know the clear overview of the businesses that operate in the sector where you intend to acquire. So many acquisitions set out in pursuit of a few known competitors and then try to shoehorn them to make them fit. You need to have a good view of the possibilities so that you get the “right fit.”