--- title: Why Acquire at all? description: Why Acquire at all? image: https://www.thinkingdimensions.com/hs-fs/file-616526862-jpg/img/banner-blog.jpg --- - [Blogs - Strategic Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/blogs-strategic-transformation) # Why Acquire at all? ![](https://www.thinkingdimensions.com/hs-fs/file-616526862-jpg/img/banner-blog.jpg) - May 18, 2012 ![Scott Newton](https://www.thinkingdimensions.com/hs-fs/file-665636338-jpg/img/Scott_Newton.jpg) [ Scott Newton ](https://www.thinkingdimensions.com/blog/strategy/author/scott-newton) 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. Blog Post ## Related Articles Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. [![](https://www.thinkingdimensions.com/hs-fs/file-616526862-jpg/img/banner-blog.jpg) ](https://www.thinkingdimensions.com/blog/strategy/simplify-the-path-to-process-performance-management) [Blogs - Strategic Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/blogs-strategic-transformation) ### [ Simplify the Path to Process Performance Management ](https://www.thinkingdimensions.com/blog/strategy/simplify-the-path-to-process-performance-management) May 19, 2012 SAY the phrase “process improvement” and watch the eyes of a CEO roll back in their head. They recoil from... [ Read more ](https://www.thinkingdimensions.com/blog/strategy/simplify-the-path-to-process-performance-management) [![](https://www.thinkingdimensions.com/hs-fs/file-616526862-jpg/img/banner-blog.jpg) ](https://www.thinkingdimensions.com/blog/strategy/everybody-is-the-president-of-something-aligning-your-people-for-performance) [Articles and Insights - Strategic Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/articles-and-insights-strategic-transformation) ### [ Everybody is the President of Something – Aligning your people for performance and accountability ](https://www.thinkingdimensions.com/blog/strategy/everybody-is-the-president-of-something-aligning-your-people-for-performance) November 23, 2012 CEO’s and Senior Leadership must have a defined process in place that allows employees to take ownership for their area... [ Read more ](https://www.thinkingdimensions.com/blog/strategy/everybody-is-the-president-of-something-aligning-your-people-for-performance) [![](https://www.thinkingdimensions.com/hs-fs/file-616526862-jpg/img/banner-blog.jpg) ](https://www.thinkingdimensions.com/blog/strategy/seize-control-of-your-business-performance-the-path-to-simple-process-manage) [Blogs - Strategic Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/blogs-strategic-transformation) ### [ Seize Control of Your Business Performance: The Path to Simple Process Management ](https://www.thinkingdimensions.com/blog/strategy/seize-control-of-your-business-performance-the-path-to-simple-process-manage) November 15, 2012 POV: Process improvement projects add value if the application method is simple to apply, contributes to the... [ Read more ](https://www.thinkingdimensions.com/blog/strategy/seize-control-of-your-business-performance-the-path-to-simple-process-manage) Check all articles Blog Post CTA ### H2 Heading Module Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. GET STARTED Subscribe for ### Our Blog Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. ![](https://googleads.g.doubleclick.net/pagead/viewthroughconversion/871691188/?guid=ON&script=0)