Thursday, December 30, 2010

Buying a business in a buyer’s market

The mergers and acquisitions sector is largely a buyer's market right http://www.bizilla.com/blog/2010/12/buying-a-business-in-a-buyers-market/now – a trend that has allowed for acquiring enterprises to essentially take their pick from a host of expansion opportunities, new customer bases and access to new products and services that go along with buying a business.

But as the economy slowly begins to improve and small businesses begin to see greater revenues, the market is expected to balance out. Until then, acquirers should take advantage of current conditions.

One of the first tasks a company needs to tackle after deciding to buy an enterprise is to assemble an acquisition team, consisting of lawyers, business brokers, accountants and general advisers.

"The team should decide if an investment banker will find and evaluate targets or if deal flow will be generated internally through screening, networking and industry contacts," writes Carolyn M. Brown for Inc. magazine. "An investment banker will have access to valuable resources and provide invaluable counsel on valuation and negotiation."

As for prospects that are not for sale, the team may have an advantage in the lack of competition for the company in question. While it may be more difficult to achieve these transactions, the sale could certainly benefit from the personal contact that would be involved.

http://www.bizilla.com/blog/2010/12/buying-a-business-in-a-buyers-market/

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