Understanding the Role of an Acquisition Manager in the Company

Putting it simply, acquisition managers are individuals who oversee and facilitate the acquisition of goods properties, companies, services, and even employees. However, these specialists are actually present in various industries and fields, which is why they have distinctive roles depending on the industry and department they are working in.

Contrary to popular belief, acquisition managers are not just focused on asset purchasing and cost management. In fact, it’s pretty difficult to gauge what acquisition managers really do in a company without understanding their area of responsibility. With that in mind, we have prepared an in-depth guide that can help you understand the role and importance of an acquisition manager in the corporate industry.

What Is the Meaning of Acquisition?

To get a good grasp of the roles and responsibilities of an acquisition manager, it’s important to know what acquisition is in the first place. In general, this term simply represents an object that is either obtained or bought. However, the object in question differs depending on the type of industry one is talking about.

In the context of business, acquisition refers to the process of purchasing most, if not all, of the shares of another company. More often than not, this is done as a strategic business solution to gain a competitive advantage over other businesses. But there are also other reasons why a company amass buyouts from another organization.

On the same side of the spectrum though, acquisition can also be defined as the method of obtaining assets that come in the form of properties, stocks, and holdings “ which are used to leverage the strengths and weaknesses of the company.

What Are the Responsibilities of an Acquisition Manager?

The role of an acquisition manager is subjective to the industry or field they are connected with. For starters, an acquisition manager in the real estate industry focuses on obtaining, selling, and purchasing properties for their clients. Meanwhile, a talent acquisition manager is in charge of hiring and recruiting employees or talents for a company or agency.

Obviously, the focus of an acquisition manager within the business industry is a lot different from these types of jobs. To give you a better understanding, let’s take a closer look at what kind of tasks an acquisition manager handles in a corporate company.

1. Oversee the purchasing activities of a company

An acquisition manager is responsible for supervising the purchasing activities of a company. However, you shouldn’t mistake this position to have the same role as a purchasing manager for purchases made since this refers to a different type of resource. To highlight this, acquisition managers oversee the process of obtaining market shares, financial holdings, commercial estates, and the like”not resources involved in manufacturing of goods.

2. Seek out prospective purchase deals

The role of an acquisition manager in a company also involves finding, researching, and examining prospective purchase deals for the company. This means that individuals who hold this position are responsible for collecting information about the stock market in order to scope out potential acquisition deals that will benefit the company.

3. Analyze the advantages and disadvantages of a certain trade

An acquisition manager is charged with the task of analyzing and examining how a certain deal or trade can affect the company. Although managers in charge of acquisitions are not the deciding party for purchases, they do have an obligation to present the advantages and disadvantages of certain deals to executives as part of the decision-making process.

4. Negotiate with third-party organizations involved in the acquisition

It is the responsibility of an acquisition manager to facilitate negotiations between the parties involved in the trade. This means that people who hold this position are the ones responsible for setting the terms of such transactions. Additionally, they are also in charge of keeping records, contracts, and documents that are related to the acquisition.

5. Finalize the purchase of acquisition

An acquisition manager also serves as the point person when it comes to implementing and finalizing deals. Individuals holding the acquisition managerial position represent the entire company when it comes to mergers, acquisitions, and the like. This means that they are the ones who finalize and close deals on behalf of the company, serving as executors of the deciding body in purchases.

 What Are the Skills that an Acquisition Manager Must Possess?

Given the challenging responsibilities that an acquisition manager has, it’s no secret that the position cannot be filled by just anyone. With that said, let’s take a good look at the skills and experiences a great acquisition manager should have.

1. Interpersonal Communication Skills

Since acquisition managers represent the companies in acquisitions, mergers, and other purchasing activities, it’s important that they have effective interpersonal communication skills to make negotiations proceed smoothly. In addition, this kind of skill is very handy in establishing and building a better relationship with third-party organizations, especially ones involved in the trade.

2. Analytical Skills

It’s vital for an acquisition manager to stay one step ahead of everyone when it comes to examining prospective purchase deals. In order to fully gauge what a deal has in store for the company, the point person must have great analytical skills that will enable them to see the potential of a certain trade from different points of view.

3. Knowledge of Law and Legal Procedures

Aside from seeking out potential purchasing deals, an acquisition manager is also the one in charge of organizing the terms and details of a purchase. Thus, it’s good to have substantial knowledge of legal procedures related to acquisitions to prevent legal repercussions in the future.

4. Background in Trade and Stocks

It’s equally important for an acquisition manager to have a fair background in trading to be able to give sound proposals regarding purchases. Additionally, people holding this position must know their way around the stock market to make faultless deductions and predictions involving acquisitions.

What is the importance of an acquisition manager in a company?

In the corporate world, a single investment or purchase can either make or break a company. Without a person to facilitate these kinds of transactions, it can be pretty hard to gauge which deals can ineptly affect your business. Thus, it’s important to have an acquisition manager that can aid you in making sound decisions about trades, acquisitions, mergers, and other purchasing arrangements.