How to Make Your Acquisition Really Pay Off

How to Make Your Acquisition Really Pay Off

How to Make Your Acquisition Really Pay Off

The leverage in cost reduction and growth opportunities

By Jim Schleckser , CEO, Inc. CEO Project@incCEOProject

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I have talked before about using due diligence as an integration planning process . One of the key aspects you are looking for in that planning process when doing an acquisition are synergies. Finding these synergies are how you can make a purchase pay off in a big way. Let me explain.

Let's start by doing some math.

In our example, I buy a company with $1 million in EBIDTA for six-times earnings, or $6 million. What will make this acquisition look even better is if I can find ways to increase the profits of the business . If I could double them, from $1 million to $2 million, for