Tag Archives: growth

How to Buy the Right Company, 1st

shakiing_handsThis is the 1st of a Series of 15 short articles on “HOW TO BUY THE RIGHT COMPANY” They will be posted at one a week

Buying a company is by far one of the most complex purchase activities most individuals ever undertake. A far broader array of skills and knowledge is required than for any other purchase, certainly much more so than purchasing a house or an automobile. And although an infrastructure exists, the prospective buyer is expected to be familiar with many of the rules of the game before undertaking such a venture or he or she won’t be taken seriously. Fair or not, age provides a rough yardstick by which many prospective buyers are initially measured by the broker and banking community. Younger buyers must overcome issues of credibility. Senior buyers must deal with the concern that they lack the energy and/or are too close to retirement to take the project seriously and must overcome their own hesitancy to start over with a new company. In spite of these obstacles, adults in a very wide range of ages successfully purchase and run their own companies. Strong drive or desire, among all the personal characteristics is perhaps the single, most important ingredient in assuring their success.

Reference: “How to Acquire the Right Business”
by John Psarouthakis and Lorraine Uhlaner
http://businessthinker.com/publications/ 

BUSINESS GROWTH MODELS

drjohn11a
Dr. John Psarouthakis,
Executive Editor of www.BusinessThinker.com,   publisher of www.GavdosPress.com and Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation.

 

This is a brief summary of a seminar on Business Growth given in several gatherings both in the USA and Europe.

In the world of business nothing ever stays the same. Today’s competitive advantage may be copied by competitors and rendered useless tomorrow. Developing new products and entering new markets are two ways to maintain a competitive edge. But in a fast-paced market, imitators can often quickly follow : even patented items are difficult to defend in a global market. The globalization of commerce has stimulated a shift in thinking about competitive advantage. In many industries a competitive position can come from underlined organizational abilities, in others it could come up from a strategy model of financing, acquisitions, licensing, geographic expansion, or a mathematical model that enables you to integrate several of the above components of growth.

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Acquisition criteria and your initial acquisition plan

DRJOHN2Dr. John Psarouthakis, Executive Editor, www.BusinessThinker.com. Founder and former CEO, JP Industries, Inc, a Fortune 500 industrial corporation. Adjunct professor, Strategy and Acquisitions, Ross School of Management, University of Michigan

This is the 3rd of short articles of my thoughts about Acquisition
of a business.

            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: 

1)    Why do you want to buy a company?

2)    What type of company do you want to buy?

3)    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:

1)    Do you want to run the business yourself or do you want others to help you?

2)    How long you plan to keep the business;

3)    Whether you plan to buy other businesses over time

4)    If buying additional companies over time, do you plan to buy related or unrelated companies?

5)    In determining what type of company you want to buy, you should ask yourself, at the outset:

6)    What industry are you interested in?

7)    How large a company do you want to purchase and manage?

8)    How profitable does the company need to be?

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