You know your market industry. You’ve analyzed competitors’ strengths, weaknesses and certainly their client list. You may have studied them so much, you feel you could run their business yourself.
So, why don’t you? By acquiring a competitor, you can:
- Increase your business quite literally overnight
- Eliminate a competitor
- Have more control over price
In today’s economy, businesses are looking to sell and it can be a good time for those in the market. However, before biting the bullet, consider these five questions:
- What are their numbers?
- Will customers cross over?
- Will the acquisition help your existing client base?
- Do you have the capacity to continue a strong revenue stream?
- Why is the other company willing to sell?
Now comes the touchiest part of the process: announcing your intentions to your rival. It’s neither easy nor natural for most CEOs to negotiate with someone they’ve been battling for years
you might prefer to use a consultant to make introductions and quarterback the buying process, particularly if you lack the time to build bridges. Consultants can be an important resource, especially if you’re entering a new geographical area or market sector in which you don’t personally know the seller. That’s because the process needs to be carefully managed to avoid alienating either party or bruising fragile egos; a third party can serve as an impartial buffer and diffuse any tensions.
Our business network is very extensive in Asia and Europe and we have conducted successfully several acquisitions. Want to cross the bridge of fast development. Call us for a 1-hour free consulting introduction.