A company strategizing an acquisition is taking on a massive responsibility. Managing business expansion through acquiring another company requires strategizing, forethought, and a significant amount of research and due diligence.
The acquiring company needs to confirm the value of the company it is looking to acquire, in order to clarify the details of the transaction, gain a strong position in negotiating terms, and accelerate the process to realize benefits as quickly as possible.
CUSTOMER BASE COMPOSITION
When researching a potential acquisition, or evaluating different options for purchase, accurate customer data can be a defining characteristic – the difference between a great candidate and an unqualified one. Information about the customers themselves can provide insight into the strength, loyalty and sustainability of that customer base. It can also give insight as to where your customers and the new customers overlap, to help build the case for acquisition.
Many different tools are available to help estimate foot traffic, but very few provide reliable and verifiable data. But with accurate foot traffic data, a company can better understand the composition of their customer base including their habits, brand affinities, and visitation patterns. This data can be used to make the case for an acquisition, as well as provide valuable insight not readily available through other channels.
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How can leveraging location data actually help with acquisition efforts?
An acquisition is a tricky undertaking. If it is strategized or handled badly, it can have significant consequences for an organization. Location data can be used to mitigate the risk associated with targeting and strategizing an acquisition by providing verifiable data about customers that may not otherwise be available.
STRENGTHEN NEGOTIATING POSITION
Reliable data is a powerful tool in a negotiation. A knowledge base that is augmented with verifiable, accurate location data gives a company a stronger negotiating position, which can be used to create more attractive terms for the purchasing company.
ACCELERATE TIME TO CLOSE
One frustrating aspect of acquiring another company is the length of time it can take to close a deal. Sustaining the momentum required for such a project gets more difficult the longer it drags on. But accurate customer insights can help you accelerate the process at every stage – from targeting the right company for acquisition, to gaining buy-in from decision makers, and moving the negotiating process forward – location data can help accelerate the process to the next stage.
Accurate customer insights can also be used to identify areas where audiences overlap between the two companies, helping to align business strategies, improve post-acquisition integration, and help them recognize the value of their investment more quickly.
Location data can be used to improve business outcomes in a number of ways. A location intelligence company can provide companies with customer insights that can be used to improve the customer experience, and identify opportunities to target new audiences, improve messaging, or introduce new products and services. However, location data can also be used to improve the acquisition process: providing verifiable data that can be used to mitigate risk, strengthen negotiations, and accelerate the entire process.
To better understand how location data can be used to improve business outcomes, request a consultation with a Gravy expert today.