If you are considering growth by acquisition then it can sometimes be hard to work out where to start… so below is what we would suggest…
Establishing a motive for the acquisition
This is important, we need to establish the why.. how is it going to make commercial sense, it important, buying a company can be a significant distraction for the management team, so the potential reward has to work, the company you buy has to be right.
Create search criteria
Which companies fit the why, what’s the profile of the firm and how do you determine what fits?
Research
So if we know what type of firm we are looking for, set about building the database with key contact details. Not everyone wants to sell.. so the more companies you can find the better!
Outreach
Consider how best to approach the companies that you want to purchase.
Intro meetings
This is a make of break part of the process. Preparation is absolutely key, we have to consider that for a vendor selling a company, it may not just be about the money, it can be to ensure that their company is in safe hands.
Initial Due diligence
This is about keeping cost down but establishing that there aren’t any red flags. A structured timed plan of questions and answers are needed without being too intrusive.
Making an offer
How and when you make the offer can depend on the vendor that you are dealing with and as with all things in business, preparation is key.
Due diligence
This is essential to get right. Once the deal is done the deal is done, and while you can ensure that the sellers warrant and indemnify you, I am sure we can all agree we don’t need the distraction or the court fees to try and get money back.
Closing
One of the most satisfying moments signing the paperwork
It doesn’t stop there…. When buying a company, how you intend taking over the business should be ready to go day one and follow a 100 day plan with key objectives.
If you would like to know more or would like to put together an acquisition plan, we would be happy to help.
Tel: 02921 175 038
Email: hello@keveral-holdings.co.uk