Successful Acquisitions

THE OLD WAY AND THE NEW WAY

My firm had a client in the health services industry that perfectly exemplified the old way of approaching acquisitions. Judy, the CEO, would be regularly approached by investment bankers hawking “the book” on a company they had for sale. She would listen to the pitch, peruse the documentation, and try to figure out whether the purchase was a good idea. Being committed to growth, she did her best to stay open to all the opportunities that were thrown at her, and eventually she allowed herself to be sold on acquiring a manufacturer of nurses’ uniforms. The target company was losing money, but she was persuaded that she could easily turn it around and generate a profit. Twelve months later, the acquisition had become ...