Since buying a company inevitably means that someone else is selling their business, both processes are very similar;
Each step in the selling process is mirrored by a similar step for a buying party. Any successful transaction can therefore only happen, when these processes coincides and are aiming for a positive result.
Once decided to look for an acquisition as the preferred growth or entry strategy, one need to define what to look for, what is the profile and what are the under and upper limits for an investment. One has to think about either buying the shares or only the assets, how to structure the deal and how to run the operation once it has been taken over (f.e. is personnel and management included in a deal?).
The search for and the acquisition of an existing business can be a lengthy process. During that process a buying party may change their mind and/or priorities. In our five-step approach we continuously monitor the progress of the process; if needed or appropriate we advise a change in the course of action. If no suitable take-over candidate can be found, a joint-venture or the start from scratch may be better alternatives (see our memo on “Business Exit & Entry Strategies”)