Business acquisition PDF Print E-mail

Even small businesses can accelerate their growth by acquisition.

Buying out a competitor can be a multiple advantage; you gain clients and turnover, you reduce competition, you may learn some new marketing strategies, inherit some good employees, acquire new product lines and technology, maybe even get some of that magic "synergy" and "critical mass" M&A experts love to talk about.

You may also end up with a dog – and a debt.

When you go business looking you will be dealing with a vendor who wants to sell (who knows more about the business than you), a business broker who wants a sale, a finance provider who wants a deal – and no-one who is looking out for your best interests only.

That's where Glide Strategic has a role.

We can provide the independent review that you need, covering:

  • The real trading and asset value of the business to you
  • The risks (especially areas where information is strangely lacking)
  • As appropriate, the market and geographical potential of the business
  • Compatibility of the business image, products, clients, staff and corporate culture with your own
  • What you will have to do to merge the business with your own
  • What value will survive
  • How you can maximise the situation

These values are quite different from the "stand alone" value of the business and from the contorted equations business brokers use to arrive at "market value".

They are the practical value and likely return to you, in your specific, current situation. That's the value you should be working on.

Our experience is that every business sale involves at least one skeleton or unexpected reality. In the overall deal it may be acceptable – or it could be the early warning you should heed.

By reviewing your potential acquisition from the viewpoints of merged business value, risk and opportunities, we can give you the clear vision that no other party to the sale has an interest in offering you.

We can also help with searching out prospective acquisitions.