Business Acquisitions

Acquisition Considerations to Avoid Blunders

  • Do you know and understand the business you are about to buy?
  • Do you know how the revenue is generated, expenses incur and what influences the cash flow?
  • Is there a pricing flexibility? What is the profit margin?
  • Have you thoroughly checked the operating history?
  • Do you know the long-term prospect?
  • Do you know the competition?
  • How is the management? Honesty, Depth & Ability?
  • How is the management-employees relation?
  • What is the ROE without undue leverage and/or creative accounting?
  • Is your due diligence comprehensive and complete?
  • Is it asset heavy?
  • Are your assumptions aggressive or inconsistent to justify the projected financial return?