When a company is considering making a strategic acquisition there are a few key areas that all business owners or partners should consider before making the move.
Here are 3 important things to consider before commencing the acquisition process:
Analyse Your Own Business
Before beginning any acquisition process, it is essential to carefully look internally and fully understand what drives your business to success and what is holding you back.
What is it that you do exceptionally well and makes you stand out in the competitive landscape? Is it your mission, core values or that you operate in a niche market? Do you produce a market leading product? Do you have a strong employee culture that drives sales?
Evaluate Your Risks
You will need to consider your own business’ current financial position. It is essential to know how much cash is freely available to invest in acquisitions.
You must also look beyond traditional financial risks. Are there any regulatory, political or macroeconomic conditions that could have an impact on the acquisition? The business landscape is constantly changing and something such as an increase in regulation or a change in political parties could cause an impact on the financial viability of the acquisition.
Define Your Search Criteria
After completing an analysis of your own business and all possible risk factors it is time to define your search criteria. In order to achieve maximum value from the acquisition, it is essential to ensure that your search criteria are referenced against your business’ own strengths, weaknesses and risk profile. The goal is to find a business that presents the best value to your business.
If you have any queries with respect to Mergers and Acquisitions, please contact our team at Quinn M&A on 02 9223 9166.