HOW TO PREPARE A GOOD ACQUISITION PLAN
You want to continue your expansion and make an acquisition? As strategic as the operation is, it is a complex project to carry out. It must be properly planned to be successful.
Ask the right questions
This is the first step. What objective are you aiming to achieve by making an acquisition? Do you want to expand your market, broaden your range of products or services, improve your margins, implement a new technology? Also, what are your potential targets? A local or international competitor? Every acquisition generates costs. What will your financing needs be?
Before you even begin your search for companies to buy, you will need to clarify your business strategy to develop a solid acquisition plan.
Pitfalls to avoid
All along the route, it is wise to have someone help you. You will need to be well informed and advised to avoid certain pitfalls. You will need to determine your approach to negotiating with the chosen target. There will be many legal documents to be drafted: a confidentiality agreement, a letter of intent, an exclusive agreement, contracts with professional advisors, a purchase agreement, etc.
Another crucial step will be the due diligence review—a demanding process, but one that can’t be skipped in order to get a true picture of the company being purchased and avoid unpleasant surprises.
The Capital Conseil team can help you, step by step, to successfully and efficiently conclude the desired transaction. It will work closely with all the players involved in the acquisition project so that you get the most out of your investment.