Your company has identified a smaller competitor in the same industry that possesses unique technological capabilities and a loyal customer base. Acquiring this firm would not only provide your company with a competitive advantage but also offer opportunities for synergies and cost savings. 

Outline the key steps you would take to execute the acquisition successfully, ensuring minimal disruption to the target company's operations and maximum value creation for your organization. Include specific considerations related to due diligence, valuation, financing, regulatory compliance, and post-acquisition integration. Justify your approach based on the financial and strategic objectives of your company, and explain how you would mitigate potential risks and challenges throughout the process.