Target 20 Potential Acquirers
A number of attributes are factored into decisions about which companies will make effective partners and potential acquirers, but four key factors determine the best fit:
- Presence of an insider relationship,
- Intensity of the competitive environment,
- Strategic importance of company's space to the partner, and
- Existence and visibility of unsolved customer problems.
The presence of an insider relationship is often the single most important success factor in building a successful partnership. Having an internal champion who is already convinced that the companies should be working together to enhance their competitive position and ability to solve customer problems optimizes the odds of success.
Characterizing the competitive environment helps clarify the chances for a successful partnership as well as the appropriate approach to take. Often companies in a highly competitive environment are willing to move more quickly to close a partnership to address holes in their offerings. The challenge is connecting with such companies during a time when they are willing to act. Wait too long and they will solve their competitive problem through internal efforts or with another partner.
Gauging the strategic importance of entity resolution to a potential partner's portfolio of capabilities is another key success factor. It may be clear that a potential partner will have a need for entity resolution in the future, but if the realization by the partner of that need has not come to fruition, moving a partnership forward will be challenging. Finding a partner who's already looking for entity resolution increases the odds of success.
The fourth success factor in evaluating potential partners is the existence and visibility of customer problems. Nothing will drive a partnership forward faster than demands from customers having problems that can be solved by entity resolution. The most effective way to validate the value of the Company to the targeted partner is by working together in a proof of concept (POC) to solve the partner's customer's problem.
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