Many entrepreneurial folks are in the business of acquiring businesses. This has become a more popular endeavor over the past years, especially as many companies have been drowned out by their competition or have found it difficult to survive under current market conditions. Business acquisitions have led to profitable outcomes for those leading the charge. The following steps are the typical phases involved in acquiring a business.

Decide Your Why

Prior to acquiring a business, you’ll need to devise a plan detailing your motive for acquiring it in the first place. The more straightforward your motive is, the more likely you are to be successful with it. With the influx of business acquisitions, you’ll have a better chance of obtaining your goal if you are straightforward with your intentions from the beginning.

Determine the Questions You Need Answering

Whether focusing on a singular business or stepping into this niche with no expectations, you should have some questions prepared to ask whichever company you will be dealing with. Discover what their finances have been like, who their client base is and what their goals are. It is always better to be informed rather than clueless. With that said, on top of your questioning, dig into the research on the opportunities that are out there.

Reach Out

Eventually, it will come time to begin the outreach phase of your acquisition journey. After gathering your questions and research together, begin reaching out to potential businesses, specifically those involved in their finances. Weigh the pros and cons of such an acquisition and prepare for an intro meeting with them, where you can openly discuss the goals that you previously decided on. This is your chance to get on good terms with their executives and gain an understanding of what your partnership might look like.

Make an Offer

Having met with the company, you’ll next need to make a valid offer if you choose to go forward with the acquisition. The art of negotiation in acquisitions takes some practice, especially if you’re wanting to get on the same page with your goals. However, work from your strong points and see if you can reach a middle ground or acceptable offer.

Due Diligence and Closing

The due diligence phase can take up to three months, but it usually does not last this long. Take this time to do thorough research and become familiar with the companies inner workings before making the deal final. After tying up any loose ends, the time will come to close your deal with a lawyer and begin the integration process.