Most business buyers believe that acquiring a business is as simple as purchasing just about anything else. However, this can leave a false impression of the scope of the work involved. Negotiating a business sale price is what it normally boils down to, right? Well, no. Although pricing expectation is an extremely important factor, it is by no means the only one and can be a relatively low priority for sellers. Finding the right fit is first on the list.
We describe ourselves as active acquisition advisors, but what does this mean? This article focusses on business sales from a buyer’s point of view. We highlight the benefits that an experienced acquisition advisor can bring to the table.
Many business owners and entrepreneurs take a relaxed approach to finding target businesses. This is often due to the large time commitments that businesspeople already have. Many of whom are too focused on day-to-day commitments to acquire a business.
Plenty of entrepreneurs believe they have their sector covered in terms of potential acquisitions by keeping a cursory eye on the market. For example, their inbox could contain a few opportunities from a friendly sale advisor, or from information discussed within industrial circles.
Businesses that are actively being marketed for sale are all that you will discover using this approach. Resulting in perfectly suitable acquisition targets left untouched. Do not disregard off market opportunities when searching for a suitable acquisition.
Professional acquisition advisors bridge this knowledge gap and provide you with a much broader list of opportunities. By putting buyers on the front foot with their searches, and by putting a significant amount of time and effort into researching both on and off market firms, expert acquisition advisors are able to ensure a significant pool of opportunities.
Gathering business intelligence from multiple sources is one thing, but what about the process after a potential acquisition target has been identified?
This is where professional assistance can really come into its own. After all, deals often fall through because the acquirer does not have the time available to push the process through. In some cases, they might not possess the correct skill set either. Such as the ability to deal with legal matters or propose post-sale contractual clauses.
Acquisition guidance is about supporting buyers throughout an entire process. That includes finding a business with the right potential, dealing with sales negotiations, assisting with business acquisition financing and even handling after-sale considerations. As professionals in this area, advisors at Firm Gains are in a position to help buyers who are acquiring a business in every stage of the process. Which means that it is much less likely to falter.
Even good deals might not complete. Often because sellers become frustrated with the pace of progress or because they have a change of heart. Expertise in handling the process is therefore essential to make sure that progress is made without the deal falling over.
Although many business owners are looking to acquire a business for re-investment, others are seeking to diversify into other areas of the economy. Stepping into unknown territory can be daunting for certain entrepreneurs, even if they have a wealth of experience.
In such cases, expert advisors with skills in different sectors can be highly beneficial. For people who are moving from employment to self-employment and who don’t have lots of entrepreneurial knowledge already, then professional advice can also be essential.
Once potential acquisition targets have been identified, we don’t simply send out mailshots and hope. Many decision makers are busy and may have not considered selling their business before. Therefore, they require a direct and professional approach that puts together a serious, and persuasive, proposition.
Bear in mind that the proactive and direct approach doesn’t end with the search phase of the sales process. Further analysis of each business opportunity is also crucial. Indeed, it can be the key to acquiring the right business with the best fit, as opposed to just any business.
Our in-depth company analysis could involve anything from the industrial sector to the financials of the target. Allowing the buyer to only focus on areas of the business they have experience in. This analytical work will be invaluable for negotiation. The buyer can often negotiate and hang a price reduction off these analytical findings.
Most business owners want to know what their advisor is working on. Our active approach therefore results in regular and up to date reporting on our progress in the process, never leaving you in the dark. To both find the most acquisition opportunities and to benefit from the widest range of potential sources, a professional advisor is clearly the way forward.
If you are seeking an acquisition advisor to assist you with your search for a perfect fit, then look no further than the independent experts, Unloq. Call us now on 01962 609 000 for a confidential conversation regarding your search to begin your route to growth.
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