Simple ways to prepare your business for a potential acquisition
It is not uncommon for successful entrepreneurs to eventually consider selling their business. Whether the main reason is for financial stability, or the company leader wants to try their hand at running another company, it is important that the right amount of thought and care is put into the process.
A contribution piece in Forbes discussed this very issue, saying that executives should concentrate on the business' core competencies and then be ready to explain all aspects of the company to potential buyers. Organizations could be struggling or thriving when a technology acquisition is considered, but the key is for owners to have thorough and accurate explanations prepared.
"Provide an explanation on what you want out of a business that is worth someone else's investment," the article said. "Are you hoping to spend more time with your family, to travel more, or—better yet—do you know the growth potential in your business but also know that you aren't in a position to take it there on your own?"
It is also important to think like a potential buyer on other levels. What do you think an acquiring company in your industry would look for in another firm? How can you showcase your strengths without overselling what your business can do?
The mergers and acquisition process will run much more smoothly when you have an understanding and an appreciation of where a purchasing company is coming from. Businesses must not only have a similar customer base or product to make an acquisition work, but it will also be helpful if each organization has complementary goals and ideals. Finding the best ways to show these aspects will help build a stronger foundation for any potential transaction.