The evaluation process takes places in successive stages or filters as you progress more deeply into the deal. At any point along the way that you feel uncomfortable with the deal, you should not go through with it. However, be aware that even in deals that go through, extensive problem-solving is often required in order to complete the deal. Continue reading The Successful Business Acquisition Process – Step #8 – The Evaluation Process: an Overview
The greatest change that seems to take place in the recovering U.S. economy is an aging population with low level of spending due combined with a high level of unemployment, low growth in consumer incomes, and difficulty to obtain credit and the high interest cost credit.
On the other hand there is an increasing demand for products and services that have not been a priority during the recession. It is expected that this demand will increase as unemployment from the current high levels improves over the the next sixteen months. However, consumer growth in spending will very likely stay below 4% the historical levels. Continue reading How to Grow Your Company as the Economy Recovers from the Recession
The first “filters” for your leads are the initial criteria that you set in your acquisition plan. Although you will have many more issues to review as information unfolds, it is unpractical to consider much more than the total sales revenues, degree of profitability, and industry, at the start, because this is all the information you are likely to get from most brokers or other sources before having to sign a confidentiality agreement.
Once you sign a confidentiality agreement, you are wise to set up more detailed criteria. Some of the more common criteria used at this next stage include the location, product line, the reputation of the company, if easily determined, growth patterns for the industry and the company up for sale, more detail about profitability, cash flow and liquidity, and of course, the overall appeal of the business to you, personally. Continue reading The Successful Business Acquisition Process – Step #7 – Narrowing Your Search: Matching Broad Criteria of Your Initial Acquisition Plan