Identify the best-fit business acquisitions

Questions to Ask When Selling Your Business Blue Charts/Graphs Images by Mergers and Acquisitions

Advising both business owners and buyers for more than four decades, Decision Associates M&A knows the questions to ask when buying a business.

In our experience, your answers to these key questions help identify the best-fit business acquisitions. Our experienced mergers and acquisitions experts work with you to understand your financial objectives as well as your culture and value preferences.

What degree of ownership do you want?

  • Do you want to own 100 percent?
  • Are you open to a strategic partnership or investors?

What type of business do you want to acquire?

  • What is your overall acquisition strategy?
  • What will this business do for you?
  • What types of businesses do not interest you?

What size of business interests you?

  • What amount of annual sales do you want?
  • What number of employees do you want?

Are you looking a business with particular products or services?

  • Do you want to have proprietary products or services?
  • Are you looking for more capacity of products than you have now or product extensions of your existing products?
  • Do you want new products of a type you don’t have now?

Does it matter where the business is located?

  • Are you looking to reach new geographic regions (e.g., to reduce shipping costs or be near markets)?
  • Are you looking to reach specific customers or types of customers (e.g., buying a company to get specific customers)?
  • Is there a limit to how far away from you the new business can be?

What acquisition strategies will you consider?

  • Do you have or are you building toward a specific holding or group of companies?
  • Do you want a business that can run on its own…management team, facilities, markets, marketing, sales force? Or, do you want something that will use skills, facilities, marketing and more from your existing business?
  • Do you need the current owner to stay? If so, how long?
  • Do you have new leadership ready or would you need to find someone to run this for you?
  • Are you looking for a business that is on the weak side in terms of business performance, but can be bought at a bargain and built up with your acumen and team?
  • Do you want something that has momentum and is in great shape to build upon?

What are your strengths as a buyer?

  • What are the strengths of your current business?
  • What are your personal strengths and those of your existing team (or partners)? What challenges fit your skills?
  • What are the types of businesses that you have done best?
  • How close do you want to be to the business?  Hands-on or more of a chairman?
  • What is your team’s intellectual property? What do they know and what holes can they plug in an acquired business?

Who is doing your due diligence?

  • How will you assess:
    • Financials, performance and capex history?
    • Markets, market diversity, market stability, market potential and competition?
    • Sales and sales channels?
    • Legal vulnerabilities, liabilities, warranty exposure and general legal history?
    • Organization and people?
    • Operations, equipment health, equipment suitability to market direction?
    • Systems and technology and quality infrastructure?
    • Overall facility condition, floors, layout, infrastructure, expansion capability?
    • Environmental challenges?

To learn more about what you need to know about buying a business, contact Decision Associates M&A today.