Business Growth Strategies Concerning Acquisition and Buyouts

Is your company considering a business acquisition or buyout? If so then you should know about the various business growth strategies that will help to produce the best results. Here are some important matters to consider from Yair Hamami manager:

1. Building/Equipment/Furniture

These are some of the key possessions of a company that’s for sale. A company has many types of assets but these are some of the most critical ones because of the high value. Make sure that to get the model number of all equipment. You should also learn about the condition and value of the items before deciding to continue with the acquisition.

In terms of the company’s building make sure to inspect it to determining if there are any modifications you’d need to make before you start using the structure. This is one of the key business growth strategies because in some situations the building might need a ton of changes. In other cases that are not the case.

2. Inventory

This involves all products/materials that are inventories for resale or use to service a customer. It’s important for you or a representative to be there when the inventory is checked. This is one of the key business growth strategies. It’s important to know the details about the status of the company’s inventory.

3. Financial Statements

Here’s another of the top business growth strategies to consider. The statements should be for the past 5 years. Evaluate them including all financial records and books. Compare the statements with the company’s tax returns. This will help to calculate the company’s earning power.

4. Incorporation

In the case, the company you want to buy is a corporation make sure to learn which area it’s registered in. You should also learn if it’s operating in its own region as a foreign corporation. These are important questions to ask so it’s one of the key business growth strategies.

5. Contract/Legal Documents

Make sure that you get copies of both of them. Contracts include those for leases, sub-contractor agreements, union contracts, sales contracts, and others. These are all important items so you should collect and examine them.

You should also get copies of all legal documents. That includes registered copyrights, trademarks, patents, etc. In the case that you’re buying a company with high-value intellectual property make sure a lawyer evaluates it. This is one of the key business growth strategies.

Finally, if there’s a real estate lease find out whether or not it’s transferable, terms, the length of time, and so on. These are important issues because they involve a major item.

6. Tax Returns

Not only should you get tax returns for a company you might acquire, but it should be for the past 5 years. It’s important to note that small business owners often buy products as a business expense but then use them for personal use.

This is a complex issue but you’ll have to figure out what the true net worth of a particular company is. It helps if you get the guidance of an accountant as they’ll have the know-how about how to do the calculations most accurately.


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