https://thewheatleygroup.com/wp-content/uploads/2014/03/96998932_9bd3f09786_b-2.jpg 683 1024 Rick Shapiro, President, The Wheatley Group https://wheatley.wpengine.com/wp-content/uploads/2013/04/wheatley-logo.png Rick Shapiro, President, The Wheatley Group2013-08-29 15:06:342014-03-19 13:53:17Key Factors on the Acquirer’s Side
Key Factors on the Acquirer’s Side
There are several key factors on the acquirer’s side of a sale, most of which are necessary to achieve a successful closing. Just as a seller has to deal with quite a few factors, the acquirer must also. Some of the more important ones on the acquisition side are:
- Sufficient financial resources to complete the deal as specified.
- Depth of capable staff to run the existing business and also execute an acquisition at the same time.
- A rational approach to the type, size and geographic location of target companies.
- The willingness to “pay-up” for acquisitions such as 6x EBITDA and, if necessary, the willingness to pay 100% cash, whether the sale is one of assets or a stock transaction.
- Assuming the acquisition search generates satisfactory deal flow, a willingness to stay the course for 6 to 12 months in the search process.
- A confirmation by the board of directors of their commitment to complete a deal.
- A “point person” in the search process, preferably the CEO, CFO or Director of Development who is reachable on a daily basis to discuss relevant matters.
- Complete access to sales manager and others by the business intermediary to discuss suggestions of target companies.
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