Why Being Acquired by an Israeli Company Is Good for Business – And How to Make It Work Israel is a natural expert in R&D, intelligence, and product development, while India thrives in IT and adapting to new technologies

Renowned worldwide as the Startup Nation, Israel has developed a well-earned reputation as a hub of innovation, with 6,673 high-tech companies and startups calling the tiny country home at the end of 2018. But as the country's high-tech ecosystem matures, there's talk of the Startup Nation transforming into the Scale-Up Nation.

As Israel and India further strengthen their commercial ties, we're likely to be followed by numerous other Israeli-Indian mergers and acquisitions. Indian companies can set themselves up for truly successful acquisitions if they follow these five tips.

1. Look for valuable synergies.

Successful acquisitions aren't simply about acquiring talent or technology. They must create a whole that's greater than the sum of its parts. When thinking about whether an Israeli acquisition would be good for your business, then, it's essential to ask whether your companies' respective strengths complement each other and can help unlock new value.

Israel is a natural expert in R&D, intelligence, and product development, while India thrives in IT and adapting to new technologies. For Indian and Israeli companies of many stripes, these are the synergistic, complementary ingredients of a smart acquisition.

Blending expertise and know-how, an Israeli-Indian company can drive natural growth and the development of innovative technologies.

2. Only pursue an acquisition if there's a viable path to growth.

A great product and team are necessary but not sufficient conditions for success. The ash heap of business history is piled high with acquisitions that looked great on paper and generated plenty of flashy headlines – but ultimately flopped.

How can you avoid a similar fate? Don't simply evaluate whether your respective teams bring the right strengths and skills to the table. Work overtime to ensure that an acquisition can fuel dynamic and scalable growth.

For Indian companies, being acquired by an Israeli business can represent a gateway to once-closed or difficult-to-access Western markets. Israeli acquiring companies, meanwhile, can obtain talented human resources and innovative technology, along with the established presence and robust customer base in India that the acquired company offers.

3. Integrate company cultures.

You've determined that your company and the prospective Israeli acquirer both have something substantial to offer each other. You've gamed out all the realistic scenarios and determined that the acquisition makes financial sense. But if you neglect company cultures, you could be in for a rougher ride than you expected.

Because misunderstandings can easily occur across geographic and cultural boundaries, leading to festering resentments and bad blood, it's critical to have strong HR departments on both sides to facilitate clear and open communication.

By breaking down barriers, you'll reinforce partnerships with pre-existing networks while also creating a truly multicultural work environment where diverse perspectives are encouraged and innovation flourishes.

4. Keep employees at the center.

Talent retention is crucial for any business, but it's doubly important when you're trying to scale growth.

When your business grows, employees gain better benefits and new opportunities to advance within the company. Growth also generates more attention for the company, boosting efforts to attract the best and the brightest.

Keeping employees and their well-being top of mind during an acquisition won't just make them happier and more successful; it's also essential to increasing their ranks.

5. Take advantage of existing networks and relationships.

Israel's Silicon Wadi has long been one of the world's centers for high-tech innovation, attracting global investment. India, too, has garnered international investment amid economic liberalization.

By harnessing your pre-existing networks of innovators, investors, and partners, you can ensure that your company continues sparking new ideas and remains on top of its game well after the ink on the acquisition deal is dry.