Planning an acquisition? Why the right strategy matters as much as the right business
For many ambitious businesses, acquisition can be one of the fastest ways to achieve growth.
Buying another business can provide access to new markets, strengthen capabilities, expand a customer base or accelerate plans that might otherwise take years to achieve organically.
However, not every acquisition delivers the value its owners hoped for.
The difference often lies not in the business being acquired, but in the strategy behind the decision.
According to Kathryn Mansell, Head of Corporate Finance at Old Mill, the most successful acquisitions begin long before a target is identified.
“It’s easy to become excited by an opportunity that lands on your desk,” says Kathryn. “But the first question shouldn’t be ‘Can we buy this business?’ It should be ‘Does this acquisition help us achieve what we’re trying to accomplish?'”
14th August 2026
Start with the destination
Businesses pursue acquisitions for many different reasons.
Some want to enter new geographical markets. Others are looking to acquire specialist expertise, diversify their offering or strengthen their position within an existing sector.
Without a clear objective, it’s easy to pursue opportunities that look attractive but fail to deliver meaningful long-term value.
“The best acquisitions are driven by strategy, not opportunity alone,” Kathryn explains. “When business owners are clear about where they want the business to be in five or ten years’ time, it becomes much easier to assess whether a potential acquisition genuinely supports that vision.”
Looking beyond the numbers
Financial performance will always be an important part of evaluating a business, but it is rarely the whole story.
Culture, leadership, customer relationships, operational capability and integration all play a significant role in determining whether an acquisition succeeds.
Questions worth considering include:
- Does the target complement your existing business?
- Will customers benefit from bringing the two businesses together?
- Does the management team strengthen your capabilities?
- How easily can systems, people and processes be integrated?
- Will the acquisition create opportunities that wouldn’t otherwise exist?
“We’ve seen acquisitions that looked excellent financially but proved difficult to integrate,” says Kathryn. “Equally, we’ve seen businesses where the strategic fit created far more value than the financials alone initially suggested.”
Due diligence is about reducing uncertainty
One of the most important stages of any acquisition is understanding exactly what you’re buying.
Good financial due diligence should do more than just review the financials; it should:
- Help identify and manage risks following the proposed transaction
- Identify weaknesses and recommend improvements in internal controls/processes
Other areas your advisory team should cover are commercial contracts, operational processes, legal obligations, employment issues and regulatory considerations; all contribute to the overall picture.
A thorough review helps identify risks early, validates assumptions and provides greater confidence when negotiating the transaction.
Think about integration before completion
Many acquisitions focus heavily on completing the transaction itself.
In reality, some of the most important work begins after the deal has been signed.
Successfully integrating systems, teams, processes and customers is often what determines whether the expected value is realised.
Planning for integration during the transaction process helps businesses maintain momentum and minimise disruption.
“The businesses that achieve the greatest value usually start planning integration long before completion,” Kathryn explains. “They understand what success looks like after the deal, not just how to complete the transaction.”
Measuring success
Completing an acquisition should never be viewed as the finish line.
The most successful businesses establish clear measures to assess whether the transaction is delivering against its original objectives.
These might include revenue growth, customer retention, improved profitability, operational efficiencies or expansion into new markets.
Reviewing performance regularly allows management teams to make informed adjustments and ensure the acquisition continues to support the wider business strategy.
Taking a joined-up approach
Acquisitions rarely involve corporate finance alone.
They often raise wider questions around tax, funding, legal structures, shareholder arrangements, succession planning and long-term business objectives.
Considering these areas together allows business owners to make decisions with greater confidence and avoid unnecessary complexity later in the process.
“Every acquisition is different,” concludes Kathryn. “The businesses that achieve the best outcomes are those that take a step back, define what success looks like and bring together the right expertise before making significant decisions.”
Planning for sustainable growth
Acquisition can be a powerful catalyst for growth, but only when it’s supported by a clear strategy, robust due diligence and careful planning.
By taking the time to understand not only the opportunity, but also how it fits within the wider ambitions of the business, owners are far more likely to create long-term value rather than simply complete another transaction.
About the author
Kathryn Mansell is Head of at Old Mill. She advises owner-managed businesses on acquisitions, disposals, management buyouts, fundraising and strategic growth, helping clients make informed decisions that support their long-term ambitions.
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