There are many books that discuss the inner workings of big M&A deals but there are few that delve into the purchase of a small business -- a move that requires a different strategy. Small companies are difficult to buy, but they can have tremendous benefits to the acquirer over the long term -- an argument that has been proven over and over again in Silicon Valley.
That said, they rarely work out if they are done opportunistically, meaning the buyer is just looking for a "good deal."
Having bought a number of small companies and frankly having sold my companies to bigger companies a number of times, I have found the following eight steps to be essential to making the process a success -- on both ends.
1. Determine exactly what you aim to purchase. When you’re buying a small company, you may be buying the business either for its talent or the intellectual property to apply to your business."
Read more at:
How to Acquire a Small Business (and Keep Employees Happy) | Reuters:
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
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