Buying the right business can expand your activities and boost your income. On the flip side,  making a bad choice will result in a loss of time and money! Strategic planning will help you assess whether the enterprise you’re after is a good deal for you.

Here are some questions you should ask yourself about buying the business you are planning to buy:

• What is the strategic value of the acquisition (in terms of products, geography, customers, workforce, etc.)?
• Is the purchase price justified?
• Will I have the necessary funding?
• Why does the owner want to sell?
• What are the debts and assets of the business?
• Is it in a good location?
• Can I integrate it into my current activities?
• Are the employees competent and motivated?
• Does it have a good reputation?
• Is it innovative?
• Is it compatible with my values ​​and management style?
• Is revenue stable? Since when?
• Does it have a prosperous future?
• How are relationships with its customers, its suppliers?
• Would the current leadership be willing to stay with the company to ensure a smooth transition?
• etc.

 

These lines of thought may prompt you to stop and consider certain criteria that can sometimes be overlooked when making an acquisition.

During a transaction, it is important to remain disciplined and to avoid premature enthusiasm result in a mistake. Be patient and take your time! Don’t be afraid to withdraw from negotiations if you have any concerns. Surround yourself with a professional team to advise and help you make the right decision.

Contact Mergex now for in-depth analysis and sound advice!