Part 2 – Where do you start your search?
Last month I started by considering the strategic reasoning you need when buying a new business. This month, we shall consider how to optimise your new business search.
Having decided why you want to buy a business, summarise the base criteria:
- the broad locations where you want the acquired company to be and also whether you would ideally want to move it to your own location.
- the size of company – revenue, profits, assets etc and what you can afford.
- produce a profile of the target company as well as a profile of your own company.
Then you need to start the research for companies that fit these criteria. Make a list of companies you know that:
- Directly compete with you
- Do what you do but are not direct competitors because they are in a different geography or a different niche
- Have approached you for any reason in the past
- You have partnered with
Then use Google searches to find similar companies to expand your search universe of companies that match your criteria:
- approach UKTI to set up a project to find companies outside UK
- source lists from research organisations (e.g. from Institute of Directors if you are a member)
- approach the appropriate Trade Association for a list of members
- talk to your personal and advisory networks and ask them to introduce prospective targets
- approach advisory companies that specifically act for buyers – such as Langcliffe Merger Connect www.mergerconnect.co.uk or Chelsea Corporate www.chelseacorporate.com and engage them to assist in your search
What LGBA/HCBA Acquisition Planning advisors can do to assist your business. Real life experience, strategic advice and tactical support.
- Assistance with what follows next – a Business Support Programme to help you implement and deliver the plans
- Assist with developing the profile of the target and of your business
- Perform the desk research
More to follow next time. Please feel free to get in touch with me at email@example.com or on 07904 766230 for more information.
Essential Steps When Acquiring a New Business
Part 1 – What is your strategic reasoning for acquiring a new business?