---
title: Why Acquire at all?
description: Why Acquire at all?
---

[Strategic Transformation Blog ](https://www.thinkingdimensions.com/blog/strategy)

# [Why Acquire at all?](https://www.thinkingdimensions.com/blog/strategy/why-acquire-at-all)

 Written by [Scott Newton](https://www.thinkingdimensions.com/blog/strategy/author/scott-newton) | 5/18/12 3:53 PM

One area we are asked about frequently is acquisitions- yes or no?

Why to acquire?

The decision for an acquisition is not easy- it is one alternative to developing capabilities organically however can be costly and also difficult to integrate.

So what are the steps required to approve an acquisition?

1- Know your strategy and specifically your competitive advantage.

2- Understand how the target will assist you in meeting your highest priority strategic emphasis goals

3- Test and validate the real NPV of the acquisition and measure its sustainability

4- Calculate the costs of integration in terms of not only money but also the internal resources required to achieve objectives

5- Recheck steps one through four

Once an acquisition has been approved- still be prepared to say no and walk away.  Your decision was based on a series of assumptions relative to the corporate strategy you have developed- if those assumptions cannot be verified it is always an alternative to close down the negotiation.  The costly acquisitions we have observed which do not work are typically due to a desire to proceed forward even though the DD was not validated- a perfect example of sunk costs considered as going concerns.

[View full post](https://www.thinkingdimensions.com/blog/strategy/why-acquire-at-all)

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