Part 3 – What do you need to watch out for?
Back in March I looked at your strategic reasons for buying a business and in April I gave pointers on searching for a new business to acquire. This month, in the final part of our series, I will highlight some key areas that you need to consider before you make your final purchase. Follow these recommendations and you could avoid a variety of unnecessary pitfalls.
The main areas to consider are:
- proper strategic thinking for an acquisition – be clear about your ‘why’, ‘what’, ‘who’, ‘where’ and ‘when’ and the distinctive benefits you hope to establish from an acquisition
- preparation – sufficient and well thought-through preparation by the management team making the acquisition
- finances – acquirer must be properly prepared financially
- negotiating price – never pay too much, plan your negotiation strategy in advance
- support – use experienced and practical professional advisors
- resources – ensure that you have adequate resources allied to the acquisition process
Acquiring a business is firstly strategic, followed in short order by “people”, after which it is both a financial and a legal matter. Successful acquisitions always have all four of these pillars soundly in place.
What LGBA/HCBA Acquisition Planning advisors can do to assist your business. Real life experience, strategic advice and tactical support.
- Assistance with what follows next – a Business Support Programme to help you implement and deliver the plans
- Fund raising and acquisitions assistance
- Developing the integration plan which is a pre-requisite to making the acquisition a success
- And of course we can negotiate on your behalf and project manage the accountants, lawyers, tax experts and due diligence all the way through to completion
Please feel free to get in touch with me at email@example.com or on 07904 766230.