Acquisitions: Pro & Con
Each year, The Cannata Report asks different organizations nationwide to weigh in on various topics relevant to the technology industry. The goal is to provide technology companies and their customers with different and diverse perspectives from across the country. In this virtual panel, The Cannata Report asked six organizations, including Pearson-Kelly Technology, about the increasing rate of acquisitions within the industry and their thoughts on acquiring in the future.
The Consensus on Acquisitions
The panelists all range in size and acquisition history, but one thing remained true: a successful acquisition depends on fit and strategy.
While acquisitions have been common in the copier industry for the last 30 years, the candidate pool is still ripe for those looking to acquire dealers. A good fit for some dealers is based on finances and geography, whereas others look at culture and organizational values to determine fit. Regardless, once an organization passes the fit test, each has its strategy for integrating the acquired business and its employees into the overall structure.
Pearson-Kelly's Thoughts on Acquisition
I’ve been in the industry for 12 years, although I was somewhat privy to it growing up, so dealer acquisition has really been my normal. However, acquisition certainly has taken a more aggressive tone here lately. My take on this approach depends on the dealer and the marketplace. If you can take advantage of acquisition opportunities, you can potentially win big if you find the right one(s). I believe the opposite can occur as well.
To me, the right opportunity for acquisition is a company with ownership that does not want to change with the evolution of technology because they are nearing retirement. Outside of that dynamic, the company culture has to blend with ours, and their customers have to be similar buyers to our customers. Then, there are the analytics that tell the rest of the story.
