When a decision is made to buy a business there is a fairly specific process you can expect to go through, especially when buying the “right” business. The acquisitions process involves several distinct steps and sub-steps that must be managed and controlled with extreme care and dealt with expertly and skillfully.
These steps to making a successful acquisition are:
- Who buys companies and why
- Acquisition criteria and your initial acquisition plan
- Building credibility for business ownership
- Building the acquisition team
- Casting the net for business leads
- Narrowing your search: matching broad criteria of your initial acquisition plan
- The evaluation process: an overview
- Preliminary due diligence
- Letter of intent and formal due diligence
- Valuing and pricing the company
- Negotiating the deal
- Financing the acquisition
- Your action plan
- Closing the Deal
- After the Deal is closed
Last, but most important, meet as many people of the company as possible during the acquisition process. This includes key employees, suppliers, customers and if possible bankers. Do not wait to meet them after you close the deal.
Stay connected with the site for a series of articles dealing with each one of the 15 steps listed above.
“How to Acquire the Right Business” by John Psarouthakis and Lorraine Uhlaner; Published by Xlibris, 2009. This book covers the 15 key steps involved in the complex and demanding process of buying the right business. The book includes topics on the search for the right business to acquire, selection, evaluation, pricing, negotiation, closing and managing the start of an acquired business. Go to Books to read about this book and buy.