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 Getty Images 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 ...read more...