Type of buyers
In a business acquisition, there are four types of buyers:
Management buyout (MBO): In an MBO, the company is taken over by current management, usually with financial support from outside investors. This can offer benefits such as a smooth transition and retention of knowledge and expertise in the company.
Management buy-in (MBI): In an MBI, the company is acquired by outside management, usually with financial support from outside investors. This can offer benefits, such as the introduction of new knowledge and expertise into the company.
Family business: In a family business acquisition, the business is transferred to another family or to an outside party. This can provide a smooth transition and ensure the continuity of the business.
Investor: An investor acquires the company or takes a large stake complete mobile numbers list in the company, but does not himself go to work in the company.
Roadmap for buying a business: 10 steps
Successfully acquiring a business requires careful planning. Therefore, we have written a step-by-step plan for a successful business acquisition:
Determine acquisition strategy: When acquiring a business, you have two options: independently or with the guidance of an acquisition consultant. Acquiring a business independently would be a good option when the expected purchase price is relatively low. You can choose to approach companies yourself or through online platforms such as Brookz.
Identify the right company: Start by identifying companies that match your goals and interests. This can be done through market research, consulting trade magazines and industry associations, and networking/personal contacts. Wise here is to create a profile of the type of company you are looking for. Using the profile, you can identify potential companies and then approach these companies for introductory interviews.
Do extensive research: After you find the right company, a thorough investigation of the company you want to acquire is conducted. This includes assessing their financial situation, the state of assets and liabilities, the value of their brand and reputation, as well as any pending legal proceedings. Also contact employees, customers and suppliers of the company to gain a better understanding of the company's culture and reputation.
Determine value: Based on your research, determine the value of the business. Doing this at an early stage will give you a quick insight into the value of the business and therefore allow you to make the right offer to the seller. It is wise to hire a specialist for this to avoid a possible financial setback.
Discuss the acquisition: Discuss the acquisition with the current owner of the business. Be sure to discuss all the details of the acquisition, including price, acquisition structure and any financing that may be needed.
Financing business acquisition: To secure financing, you will probably need several forms of financing. The bank will provide up to 50% of the financing. There are a wide variety of forms of financing available. Consider a private investor, crowdfunding, microfinance or a subsidy scheme. Engage an accountant to map out your financial affairs and take maximum advantage of tax schemes.