- Why do you want to buy a company?
- What type of company do you want to buy?
- How are you going to go about buying the company?
In determining why you want to buy a company, you should ask yourself and develop answers for each of the following questions:
- Do you want to run the business yourself, or do you want others to help you?
- How long do you plan to keep the business?
- Do you plan to buy other businesses overtime?
- If buying additional companies overtime, do you plan to buy related or unrelated companies?
In determining what type of company you want to buy, you should ask yourself, at the outset the following questions:
1. What industry are you interested in?
2. How large a company do you want to purchase and manage?
3. How profitable does the company need to be?
And in developing a plan on how you plan to go about buying a company, resolving the following issues at the outset will affect the types of investors you will attract and potentially, how successful your search will be:
- Where will you go for the money?
- Who will help you in your search?
- What personal arrangements will you need to make until you find and purchase the company?
- How do you plan to find the right company?
- What is your exit strategy? That is, how will investors be able to get their initial investment out of the business overtime?
Clarifying these issues in your mind will advance your efforts at selecting the appropriate company.
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