The serious buyer's guide to making a successful acquisition - Part 2

The serious buyer's guide to making a successful acquisition - Part 2

In part one we discussed essential preparatory steps to help strengthen your position when contacting business owners and their representatives. From the importance of first impressions to the proper timing of your responses and of course your overall presentation as a suitable buyer, there are certain key issues to cover to help ensure that you are successfully received. Once you have proved your suitability as a potential buyer, the next step is to begin communications between yourself and the seller, gathering as much information about them and the business as possible.

Dealing with business sellers

The right price for a business is often the price that a buyer is happy to pay and the seller is happy to sell. Do not be stubborn, learn to compromise.

What questions to ask?

Below is a list of some of the most important questions to have ready when meeting with the seller:

  • Determine how long the business has been on the market. Has the business been put on and taken off the market previously and if so be sure to enquire early on about the reasons for this.
  • It is important to find out if the seller is open to a structured earn-out. If there is a valuation difference between how much you are willing to pay for a business and how much the seller expects to profit from the sale, an earn-out structure may be ideal to bridge the gap between the two parties.

If you are seriously considering an acquisition but are unsure about where to look for the right business or what steps to take, get in touch with us today.