So, you are wanting to acquire another business similar to your own? If you have decided to purchase an existing business rather than starting another business from the ground up, it’s important to consider various factors. Acquiring a business can differ quite considerably from starting your own company. We’ve listed some helpful pointers to consider below to support you on your journey from this moment to purchasing a new business.
Look for the warning signs
You already own your own business, so you have a huge advantage in terms of knowledge as a business owner. You can use this knowledge to look out for any potential red flags which could indicate the business may not be the best purchase. If your current business is doing well, use this as a comparable measure to focus on the things you want in a business. If there are certain issues with your current company that you would like to change, highlight these as things to bear in mind.
Warning signs may include a lack of transparency, issues with contracts, or if the company profit has decreased over time. Trust your gut when it’s telling you something isn’t right and don’t be afraid to dig deep and ask questions to get into the nitty gritty issues of the business.
Do the culture and values match your own?
If you have already had the opportunity to create your own business, you will understand the importance of company values and culture. Your leadership style will have heavily influenced these in your own company, something you have adopted from the start, as well as the staff members you have hired, and the work ethos your organisation has adopted over time. It’s important to recognise that your influence has most likely been imperative in these factors from when you first launched.
When acquiring a new business, you need to be open to the fact that these factors will have already been established. Therefore, it’s vital for you to determine if the culture and values already present match your own. These can of course be worked on, but this could be a potentially huge challenge. Find a business that already matches your values and the work culture you are aiming for.
Be prepared for double the work and more
As a business owner, you will know first-hand the amount of time, effort, and energy it takes to run a successful business. You are clearly keen for a new challenge if you are hoping to take on another business. This is great, but it’s important for you to think about whether or not you are prepared for what could likely be more than double the work.
By now, you understand your business well and know it like the back of your hand. Taking on a new business will require significant time and effort as standard, as well as additional input so that you can learn the ropes for the new business. One business feels like owning one business, but two businesses may feel like owning ten businesses at first, until you get to grips with everything. Be prepared for the graft at first, Safe in the knowledge that things will get easier over time.
Research, research, research
It’s imperative to comprehensively do your research first before acquiring a new company. Take some time to really understand what is available in your chosen sector. You probably will already have a good understanding of what is out there, since you work in the field already. You can start by making a shortlist of potential businesses and research each of these in detail. Ensure you look at their website, customer reviews, and what information the business has chosen to put out there. Does the business impress you based on these factors? This is a wonderful place to start if it does.
Schedule an initial viewing
Buying a business is not too dissimilar to buying a house, and you should schedule initial viewings in the same way. This is a good opportunity to get your important questions answered and really understand the everyday function of the business. Viewings are great, as they really help you to get a sense of the business. Feel free to schedule in as many viewings as needed until you feel sure about it.
Yorkshire Change
Here at Yorkshire Change, we want to make the process of finding a business as easy as possible. Our team of consultants are all extremely knowledgeable and can support you through your unique individual change process. We’ll help you to find a business, buy it, and integrate it with your existing company. To speak to an expert member of our team, please call 0333 090 8710, or fill in the contact form on our website.