Acquiring a business can be a daunting and nerve racking experience. It is difficult to know where or how to find the “right” business and whether or not the seller is being forthright. It can be equally challenging to evaluate and ascertain if the financial information provided is true, complete and accurate.
Metaphorically, businesses are tantamount to “living entities” with many moving parts. It is imperative that you understand the inner workings associated with these entities. To maximize the probability of success,it is critical that you partner with professionals that can help you find, analyze and negotiate transactions that are the right fit for your needs and goals.
Buyers must scrutinize acquisition opportunities diligently from many vantage points – some of which are listed below:
- Management breadth and depth
- Industry developments and trends
- Regional demographics
- Governmental impact and legislation
- External factors
- Legal and environmental considerations
- Price, terms, tax and structure issues
- Financing viability of business
- Client concentration and diversification
- Suppliers and vendors
- Quality and specifics of financial information
- Competitive factors
- Barriers to entry
- Proprietary aspects
- Vulnerabilities and weaknesses
- Strengths and attributes
- Seller motivations
Astute advice from experienced professionals can make the difference between success and failure.