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?
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!