📘How-To GuideStage 4 — Medium Business5 min read

How to Acquire and Integrate a Smaller Business

M&A basics for mid-market operators.

M&A is not a shortcut. Two-thirds of acquisitions destroy value — and the ones that work are the ones where the buyer had a specific, written thesis they refused to deviate from.

The Insight

Most mid-market acquirers buy for growth and integrate for cost — and wreck both. The ones who succeed treat the acquisition as a specific strategic bet with a specific integration plan, not a vague bolt-on. Integration is the job; the close is just the starting gun.

01

Write the Thesis Before You Look at Targets

A good M&A thesis answers: what capability, market, or revenue are we buying? What would we pay versus building it? What would failure look like? What assumptions must be true? Every deal then gets judged against the thesis — not against founder ambition or banker enthusiasm. Most bad acquisitions were done against no thesis at all.

02

Diligence the Culture as Hard as the Numbers

Commercial, financial, legal, and tech diligence are table stakes. Cultural diligence is what separates deals that work. Spend time with the target's middle management. Read their Glassdoor. Interview their former employees. A 'great' target with toxic culture will destroy value inside your own company within 18 months. Most acquirers skip this — and pay for it on day 120.

03

Integrate on a Written 100-Day Plan

Day one starts with a published 100-day integration plan: systems, people, customers, brand, finances. Owners named, milestones dated, weekly reviews scheduled. The first 100 days set the tone for the next five years. Acquirers who drift through them lose the acquired team's best people — and those departures tell the market whether the deal worked before the numbers do.

The Takeaway

Thesis first. Cultural diligence second. 100-day plan third. The deal is the beginning of the work — treat close day as kickoff, not finish line.

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