Success is more likely if the two parties complement each other and bring financial and operational synergies to the combined entity. To judge whether two companies are a good fit, several questions must be answered. Once an acquisition is completed, both the buyer and the seller must be able to seamlessly integrate into one unit. This can only happen if both companies have comparable operational styles and visions. Finally, the two management teams must be able to work in harmony with each other.
Human capital is often a key factor in spurring a buyer's interest in a target in the first place.
One of the most significant potential barriers to the success of any acquisition is an inability on the part of the two business teams to work together. This is no less vital an issue with technology transactions. However, the sale process must be handled properly from the beginning. If companies select the wrong partner, or aren't successful in their efforts to complete a merger or acquisition, they often don't get a second chance. Particularly for companies with limited capital, making the right choices can be a matter of corporate viability and survival.