Acquiring another business is one of the tried-and-true methods for growing your own business, but a business acquisition has to be just right in order for it to fit your circumstances. Below are identified some tips for finding the right kind of business acquisition to expand your own operation, and take your business to the next level.
Consult with industry insiders
In order to find other companies in your market which may be in financial distress, it might be helpful for you to consult with bankers, CPAs, and others who have knowledge of companies with financial difficulties. While they may not be ethically able to advise you on these issues, they can consult with such foundering companies, and tell them that yours is a company seeking an acquisition.
Pay close attention to the marketplace
By watching developments within your own market, it should be relatively easy to determine which companies are doing well, and which companies are struggling. Just by keeping the pulse beat of your own market, you should be able to find companies in need of financial help, and which might be open to the possibility of an acquisition.
Meet with business owners
When you are fairly sure that you have identified one or more financially strapped companies, try to arrange a business meeting with an owner or executive manager to explore the possibilities of an acquisition. If talks proceed beyond the initial phase, it would be to your advantage to retain the services of an accredited valuation analyst to ascertain the true value of the other company.
Consider an asset purchase
If there are certain elements of a potential acquisition company that you really don’t want to take on, you might consider an asset purchase instead. In this arrangement, you would simply acquire the other company’s assets, but none of its liabilities.
Funding for business acquisitions
If you’ve been considering a business acquisition, but lack the necessary funding to pull it off, we may be able to help you. Contact us at Black Wolf Capital Group, so we can discuss some options for providing the capital you need to go through with your acquisition plans.