Buying an existing business is a great way to grow your business. CMC have extensive experience as buyers of companies and can support you through this process.
Buying a business is easy with the help of online sites, but it takes time to find a quality opportunity that is not listed publically, requiring knowledge of different resources and expertise from professionals.
There are 3 phases that we will guide you through:-
- Do you have a clear acquisition strategy and criteria for the sort of company you are looking for?
- How do you find suitable targets?
- What do you want to pay?
Engagement with the Target
- A detailed commercial review is needed for the target business
- A business plan is required to show how the sale would perform under new ownership
- What are the synergies, ie how would the combined business improve sales or cut costs?
- Beware of simply hoping that you can run the business better than the existing owner
- A structured offer will be needed to reflect the price and the necessary conditions (often called a Heads of Terms)
- Due diligence will be needed to check your assumptions and accuracy of the information you have been given
- Lawyers prepare and complete the Purchase Agreement
- Buying a business is easy – making a success of a purchase takes careful planning
- Essential to have a plan for the business post acquisition
- Do you integrate or leave stand alone?
- How do you deliver the business benefits that were identified before the purchase?
Unless, as a business, you perform acquisitions on a regular basis it would be wise to bring in some experienced and professional expertise. CMC would be delighted to help. Contact us by completing the form below to arrange a confidential meeting.