Corporate Development (Software Industry)

When a company first starts exploring potential merger and acquisition opportunities it can be a highly emotional affair. "I think we should buy XYZ company" says the V.P. Sales. "They're technology is crap" says the CTO.

One way to help remove the emotion (in even talking about a potential merger or acquisition) is to implement a sponsorship nomination discipline. In other words: whoever sponsors the investment of resources into a potential acquisition, at the executive level, puts their career/bonus/etc. on the line. That gets people sober in a hurry.

If you don't use precedence, at least to some degree, you're a fool. Look at similar acquisitions that were done in the past. Find out what went wrong and what went right. Talk, if you can, to the actual executives or employees that were involved. Penetrate a user group, or user conference, of the company you are interested in. Talk to customers, talk to customers, talk to customers.