Do you have the ambition to take over a company, but are you afraid of making the wrong choice? How do you find the right company to take over? We share a number of tips to find the perfect candidate for your acquisition.
Find the right company to take over
By taking over a company you get the opportunity to grow faster. Your company gains access to new products, services and knowledge. It can give a huge boost and distinguish your company from the competition. But it is important that you make the right choice in which company to take over. How do you ensure that it is a good match? We give you a number of tips.
Where are you and where do you want to go?
First of all, it is important to have a clear idea of what your own organization stands for. What core values does your company have that you want to keep and what do you have to offer the other company? Map for yourself which way you want to go in the coming years. What do you want to show to the outside world and what do you want to offer the customer? For example, do you want to expand your business by offering services in addition to products or do you want to add a new product group? Create a clear ideal image for yourself.
What do you have to offer?
An acquisition comes from two sides. You will have to assure the other company that you can create something valuable together. Think in advance how far you want to go to cater the other company. Set your own limits in advance. For example, it is important to think in advance about a maximum acquisition sum. It is even more important to think about the possibilities that you can offer the other party. Think of means of production, network, reputation, knowledge and foreign branches.
What do you need?
The next question is: what do you need from someone else to achieve your goals? Make a clear profile of your wishes. Describe well how far your knowledge and skills go and where this should be supplemented by the company to be acquired. Sometimes it is quite difficult to explain what your company needs to grow further, but try to figure this out before you start your search.
Put together a company profile
Ask yourself what type of company you would like to take over. Create a clear profile. In which sector are you looking? Is region important to you, and if so: which one? What size should the company have? Are you looking for a fast or slow growing company? And which corporate culture fits your company? Also delve into the products, services and markets of the companies that you might want to take over. This can provide new insights and help to get a more specific picture of who can help you further.
What are the risks?
There are always risks associated with a takeover. It is therefore important for you to know whether the company you are taking over is financially sound and where the growth opportunities lie. By getting to know the market in which the company operates, you get to know the pitfalls. In addition, it is good to get to know your new competitors and to investigate what is currently going on within this industry.
These were our tips in our blog ‘How do you find the right company to take over?’. Do you need professional advise? We at Stratfield are happy to help. With our large network of companies we can help you find the right candidate for your takeover! You can contact us here.