Valuations & Acquisitions: Know What to Ask
If you’re considering acquiring another company, can (and how) do you best capture “synergies” — especially those in customer list and cost per order processed (variable and fixed expense)?
Can your model of the first 12-month customer value (lifetime value) be used not only for setting your annual mail plan and profit and loss, but also throughout deal making? Will financing sources actually focus and understand it? How do you present it?
Whether you’re a cataloger or other multichannel marketer, buyer or seller, financing source, managing director at an investment bank, or an educator, e-mail me a question or two. I’ll try to answer all questions with broad appeal in future editions of this column.
Larry West is president of West Cos. Inc., a New York-based valuations and acquisitions consulting firm. Contact: email@example.com.