Earlier this year, my business, Laundryheap, acquired our biggest UK rival - Laundrapp. The process taught me four essential things that need to be considered before you sign on the dotted line. 

Be clear about your priorities 

Before you begin the process of seeking out potential companies to acquire, you need to be confident that it’s going to steer your company in the direction you need it to. Evaluate your main objectives for this process.

Avoid prioritising fluffy targets that can’t be accurately measured. Work on evolving vague terms (such as ‘strategic positioning’, ‘efficient processing’ and ‘increased growth’) into quantifiable goals. This way, you’ll have clarity on what you’re seeking to achieve with an acquisition and will know when the right opportunity arises. 

Lead with transparency and sensitivity 

It’s very easy to get sucked into the logistical and legal processes surrounding an acquisition, but don’t forget about the employees on both sides of the deal. Meet with your team and share the rationale behind the decision, tying it into your wider vision for the business. Your staff may well prove to be an effective sounding board and draw attention to unforeseen issues that need to be hedged. 

In addition to liaising with your current team, make sure to communicate sensitively with employees of the company that you’re acquiring. During this time, employee trust and motivation are likely to waver within your acquired business, so make yourself available to accommodate their concerns. If you’re planning on retaining those employees, like we did when we acquired Laundrapp, then you’ll need to earn their trust and confidence. Likewise, if an acquisition will involve redundancies, it’s vital to be honest as soon as possible. Don’t leave anyone in the dark for any longer than necessary. 

Organise a timeline and align key stakeholders around it.

Don’t underestimate how challenging it can be to merge two companies’ systems, teams and brands. Map out everything that will need to be addressed, decided, and actioned, and create a clear timeline for delivery. Deals often get delayed or take longer than predicted, so ensure your planning is dynamic and able to cope with shifts to the schedule. Share the plans with your team and get their feedback, before ensuring they stay looped in on progress.

In order to alleviate internal capacity pressures for any employees that are helping to manage your acquisition, it can be helpful to consult external advisors during this transition - they’ll bring both capacity and valuable expertise. However, as a founder, make sure you stay behind the wheel of the overall process.

Prepare for the worst

Rome wasn’t built in a day - you may well need to exercise extreme patience in order for your acquisition to be a success. Prepare for delays, last minute hurdles and the potential that it could all fall apart at the last minute. Ensure these worst case scenarios have been factored into your planning and that you and your team know how you’ll handle them. At the end of the day, ensuring that your business continues to grow - with or without an acquisition -  is the most important thing.