There should be one or more compelling answers ranging from a desire to accelerate growth in a basic business, to add product lines, to diversify into new areas, adding geography, to acquiring capable management, and so on. The timing should be such that there is management time and energy to engage in the process at the appropriate levels. Conducting an acquisition involves many steps and phases.
Targets have to be identified, qualified and contacted.
We have to present our case to the potential sellers. We have to negotiate with one or more prospects, perhaps simultaneously, to hope of closing an acquisition on a reasonable timeframe, much less multiple acquisitions. It is essential to begin planning for the integration of an acquisition before the acquisition begins. Remember that the acquisition is not the end objective. A successfully integrated and profitable acquisition is the objective, so begin with the end in mind.