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Thinking of purchasing a new company to add to your portfolio? Pt 2

By Russell Pope
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Steps 4-6 when acquiring a new company

  1. Consider the company’s culture

Culture clashes can have a severe impact on the success and timely completion of your acquisition.

You will be purchasing a company that has established attitudes, practices, and values.

If your due diligence finds that its values do not align with your own – or you have concerns that the business’ corporate culture is dramatically different to the kind of workplace environment, you have shaped within your existing organisation – it could be time to assess what this might mean for inter-company relations.

Remember that international business leaders follow different corporate cultures, too. If you are looking to purchase an overseas business, consider how the current owner’s way of working may affect your operations and fit into your vision for the acquisition.

2. Look at the impact the acquisition will have on your finances

Is the purchase likely to increase overall revenues and provide stable revenue streams? Or do the current numbers raise concerns about how quickly the company will be able to grow? Be sure to look at your acquisition’s finances from every aspect and consider whether it really makes financial sense to invest.

Now it’s time to ask for support from UKBA, to get help from our experienced Finance Directors and professional business advisors.

We know precisely what to look for in a company’s accounts and working practices as part of the M&A process, and will happily raise queries and liaise with the firm’s current owners on your behalf to ensure you have all the data you need to make an informed decision.

Now it’s time to audit and understand what’s really happening in the target acquisition. This will highlight where the longer-term work is needed and gauge what further investment may be required.

3. Get to know the team behind the brand

These are the people you will be working with on a daily basis; the people you will be trusting to run and grow your new acquisition. Get familiar with the company’s management structure, gain an understanding of the company’s existing hierarchy, and identify each person’s unique talents. From here, you can determine whether you can work with what you’ve got, or plan to bring in new members of staff to plug any gaps in knowledge or experience.

To speak with a business advisor use the link or call 0333 444 8522

Courtesy of Russel Pope

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