M&A Checklist

Strategic integration is perhaps one of the most important considerations in a merger and acquisition, not just the "financial factors checklist." In many cases, the integration planning of two companies can make or break the success of the M&A deal. This includes people integration, salary, pay scales, administration planning, corporate culture differences, market delivery andsales policies, facilities and technology compatibility. Perhaps this is another "checklist."

I also take exception to some of the statements in your article by Mark B. Hodges {"So You Want To Buy a Company," March 29, page 47}. Although his information might be helpful to the novice as a checklist for a VAR, I personally find that his specific statement about $200,000 per employee is misleading. There is a significant difference between a product and service-based business mix. Sun Microsystems and Microsoft generate more than this amount per employee, and to be sure, a VAR with this level of sales per employee should be profitable. However, there are many VARs with excellent value to a buyer that do not exceed this threshold value due to intangibles such as technology, channel, market position, customer base and international sales presence.

Robert S. Barton

Principal Consultant

Technology By Design Inc.

Venice, Fla.

[email protected]