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This is the 2nd of a Series of 15 short articles on “HOW TO BUY THE RIGHT COMPANY” They will be posted at one a week

An acquisition business plan needs to be developed before you begin your search to buy a company. Three overall categories of decisions need to be made.

  • 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 you plan to keep the business;
  • Whether you plan to buy other businesses over time
  • If buying additional companies over time, 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:
  • What industry are you interested in?
  • How large a company do you want to purchase and manage?
  • How profitable does the company need to be?Clarifying these issues in your mind will advance your efforts at selecting the appropriate company.

Reference: “How to Acquire the Right Business”
by John Psarouthakis and Lorraine Uhlaner 

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