Tag Archives: how to buy a company

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

The Successful Business Acquisition Process – Step #7 – Narrowing Your Search: Matching Broad Criteria of Your Initial Acquisition Plan

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