Part 2 – Where do you start your search?

Last month I started by considering the strategic reasoning you need when buying a new business.  This month, we shall consider how to optimise your new business search.

Having decided why you want to buy a business, summarise the base criteria:

1. the broad locations where you want the acquired company to be and also whether you would ideally want to move it to your own location.
2. the size of company – revenue, profits, assets etc and what you can afford.
3. produce a profile of the target company as well as a profile of your own company.

Then you need to start the research for companies that fit these criteria.  Make a list of companies you know that:

• Directly compete with you
• Do what you do but are not direct competitors because they are in a different geography or a different niche
• Have approached you for any reason in the past
• You have partnered with

Then use Google searches to find similar companies to expand your search universe of companies that match your criteria:

• approach UKTI to set up a project to find companies outside UK
• source lists from research organisations (e.g. from Institute of Directors if you are a member)
• approach the appropriate Trade Association for a list of members
• talk to your personal and advisory networks and ask them to introduce prospective targets
• approach advisory companies that specifically act for buyers – such as Langcliffe Merger Connect www.mergerconnect.co.uk or Chelsea Corporate www.chelseacorporate.com and engage them to assist in your search

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
• Assist with developing the profile of the target and of your business
• Perform the desk research

More to follow next time.  Please feel free to get in touch with me at peter.kroeger@lgbusinessadvisors.co.uk or on 07904 766230 for more information.

See also: 
Essential Steps When Acquiring a New Business
Part 1 – What is your strategic reasoning for acquiring a new business?