Tag Archives: mergers

A Few Notes on Mergers & Acquisitions

Dr. John Psarouthakis, Executive Editor of www.BusinessThnker.com, is the Founder and former CEO of JP Industries, Inc, a Fortune 500 industrial group. that acquired 28 operations in USA and western Europe before  merging with T&N, a British group.

Because the content of this article is still relevant today as it was in 2009 when it was first posted we are reposting it today.

The successful mergers and acquisitions require a great deal more than just analysis of the financial statements of the candidate. Digging in deeply in the operating details and asking the right questions is a fundamental component of evaluating the candidate. A very involved and intense discussion of all aspects of the business is necessary.

The M&A team will be faced with many challenges and numerous time-critical deadlines and milestones to be met. Customers want to know what is going on, suppliers similarly.  During the early stages of the integration process   the board’s executive committee must closely oversee and evaluate the effectiveness of the process..

Continue reading A Few Notes on Mergers & Acquisitions

HOW TO BUY THE RIGHT COMPANY, 2nd

shakiing_hands
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

http://businessthinker.com/publications/ 

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/