Essential steps when acquiring a new business 2

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 peter.kroeger@lgbusinessadvisors.co.uk or on 07904 766230 for more information.