Breaking It Down: The Second of the Ten Commandments of Business Acquisitions
Our Ten Commandments of Business Acquisitions has been so popular that we have decided to break it down. To briefly discuss each of the Ten Commandments and its import and impact.
The second commandment: "Play ball in your own league."
As I explained earlier, in evaluating acquisition opportunities, too many prospective buyers have an appetite that exceeds their grasp. Prospective buyers need to be realistic and prepare their acquisition criteria taking into consideration their experience and their available capital.
Since many business owners who would consider selling the business are only interested in financially qualified buyers who will be able to consummate an acquisition quickly, prospective buyers should be sure they have the means to close on a transaction before submitting a bid.
A prospective buyer should also have a background and experience with the business to be acquired.
A prospective buyer who is a "good fit" will quickly distinguish him or her or itself from other prospective buyers. A buyer who is realistic about his or her or its capabilities, both from the standpoint of management experience and expertise and financial resources, will increase his or her or its chances for success in acquiring a business.