If you’re in search of a lucrative opportunity, buying an established business is often an excellent option. Proper business planning is the key to successful acquisitions, and you want to be sure that the company you purchase offers the highest return on your investment. Take the following steps to ensure you’re investing wisely.
How to Acquire a New Business
1. Perform Due Diligence
Many companies may be tempted to misrepresent their business to prospective buyers for financial gain. Request all pertinent documents when reviewing a candidate. Tax returns, bank statements, contracts, and leases will all provide a clear picture of the health of the enterprise. Investigate the professional licenses, permits, disciplinary backgrounds, and prior legal entanglements of your potential acquisition to prevent issues.
2. Know Your Budget
Be open and honest about your acquisition budget when business planning. There’s no point in entertaining offers that are out of reach, as this will only lead to frustration. Calculate what you can reasonably afford before you start looking. Most acquisitions take three to six months to complete, so keep in mind that your circumstances may change during the process.
3. Bring Together Your Team
Once you find a worthy purchase, you’ll need to craft a transition plan. Making an interim team dedicated to handling the changes will simplify the adjustment process. Name representatives from HR, IT, finance, and other relevant departments at each company and provide them with tasks related to their skill sets.
4. Make Sure Goals Are Clearly Defined
It’s critical to have tangible goals, such as expanding your existing business into new markets or opening up satellite locations to reach more customers. Well-defined objectives should make up a large part of business planning if you want to continue your upward momentum when purchasing a business.
If you’re interested in selling or buying a business in the near future, the professionals at Zoellner Garten & Company will guide you to a successful sale or acquisition. Since the company was founded in 1988, they have helped numerous buyers and sellers throughout Southwestern Ohio, Northern Kentucky, across the United States to accomplish their dream of running a company. Call (513) 852-2400 to speak with an advisor or visit them online.