Tag Archives: buying a business

The Evaluation of a Company to Buy

JP Bio PhotoBy Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com,  Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

This is the 7th of a Series of 15 short articles on “HOW TO BUY THE RIGHT COMPANY” They will be posted at one a week

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. The filters are as follows:

Filter 1:   Initial information provided by your broker (Filters initial lead pool from hundreds or thousands to about 50 leads)

Filter 2:   Initial data from the broker after a confidentiality agreement is signed (allows you to weed out all but about 25-30 leads, approximately speaking)

Filter 3:   Information obtained from visit to the company and preliminary due diligence (provides you with means to reduce lead pool further to about a dozen target companies)

Continue reading The Evaluation of a Company to Buy

Investing in Michigan Companies

Since the turn of the 21st century, Michigan manufacturers have struggled with a few key issues that have begun to change the shape of several industries that drive Michigan’s economy: 1) Increased competition from foreign countries where workers are paid lower wages; 2) increased competition from an influx of foreign competitors doing business in Michigan; 3) tremendous increases in raw material prices; and 4) inordinately high increases in basic costs necessary to run business, such as health care.  Many business owners have never experienced a multitude of issues such as these, and have found themselves either unable to effectively manage their companies during these trying times, or are unwilling to make the investments necessary in their business to remain competitive. Continue reading Investing in Michigan Companies

The Successful Business Acquisition Process – Step #8 – The Evaluation Process: an Overview

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