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Atricle Dump - DIS-Qualifying Companies = Better Acquisitions!
Human Resource Employee Risk ProfileIs your business at risk? Do you want peace of mind?Please answer the following question honestly by drawing a circle around or shading in the column. If you can only answer part of the question in the affirmative, then you should select ‘No’ eg in Q1 if you have employment contracts for your employees and not for your management team then select ‘No’.1. I have up to date employment contracts for all employees and management Yes No2. I induct all employees into the workplace using a documented process Yes No3. I have fully documented human resources procedures and policies in pla
* Will the owner(s) also accept an “earn-out” portion?
* Is the owner willing to re-invest in the new company?
It is important to define early on in your business purchase process what your most critical business purchase criteria are and what attributes of a company are “deal makers” or “deal breakers”. Companies with noteworthy attributes that did not make your critical attribute filter list will have to be evaluated on their own merits.
You will find that once you are actively involved in finding your “ideal” company to buy that every purchase candidate is different and each purchase opportunity you initially disqualify with this list will generate another disqualification question you did not think of before. Disqualifying acquisition candidates is truly an iterative process. There are no standardized procedures or required evaluation sequences in this initial
Every team wants to excel in their area whether it is a sports team or a corporate team or even a small office team. The only way to succeed is by building that team to the strongest level they can be. For as long as time there have been leaders they have been wanting to improve how the group operates so that the mission can be accomplished efficiently and effectively. The need for stronger knit teams has led leaders of all types of groups to do their best to establish techniques and exercises to help bring about the changes they desire in the group.Team building can take the form of many things. One of the most popular techniques that hav
One of the first things you want to do in development of your business purchase process is establish a list of “initial” DIS qualification questions for use with business owners.
We use the term disqualification because you clearly throw away a lot of hay to get to the needle in the stack! This list of questions will add a tremendous amount of efficiency to your business purchase methodology and make the job of your merger and acquisition intermediary of choice much easier.
For simplicity of use, we have listed our most practical questions categorically. You are encouraged to edit, add or delete any of our listed questions. Our list of questions cover many fundamental business attributes, but not many of the subjective benchmarks to be considered in any business purchase disqualification process. Again, you can add whatever number of questions that correlate to your own personal purchase criteria or preferences, business experiences, knowledge and risk/ reward tolerance levels.
Suggested Initial Acquisition Qualification Questions:
INITIAL / BASIC QUESTIONS:
* Why is the business for sale?
* How long has it been for sale?
* Has there been other formal purchase offers made to date?
* Will the business sale include any transfer of real estate?
* What is the ownership structure of the company?
* How is the company legally organized?
* Who with the business will be involved in the negotiation of the sale?
* What are the owners desired transition plans?
* Is senior management willing to stay and invest in the new company?
* Does a new company leader candidate exist in the company now?
* Who knows the business is for sale? How confidential is this subject?
* Is there any known outstanding litigation or environmental concerns?
BUSINESS PROFILE QUESTIONS:
* Are all products manufactured “in house”?
* What % of products or services are “custom” or “made-to- order”?
* Is there proprietary technology?
* Any protected technology or patents, existing or pending?
* How many full time employees?
* Locations of all office/ manufacturing sites?
* Is the labor force organized in any form?
* What are the financial/ technical barriers to entry of this business?
* Are there purchase contracts? If so, are they assignable?
FINANCIALS:
* What financial information is available?
* Income statements and balance sheets for last 3 years?
* Are the company’s financials audited, reviewed or internally compiled?
* Are the inventory and accounts receivable in a healthy status?
* What is a replacement cost estimate for the fixed assets?
* Are there forecasted financial performance documents?
MARKETING AND SALES:
* Assuming investment, how can the business be doubled?
* How are products sold? Direct? Agents? Distributors?
* What % of revenues are domestic?
* What % of total revenues are from the top 5 customers?
* What is the company’s estimated market share?
* Who are the primary competitors?
* Are there noteworthy new products being developed/ introduced?
TERMS:
* What is the current business valuation? How is it defined?
* Will the owner(s) carry a note?
* Will the owner(s) also accept an “earn-out” portion?
* Is the owner willing to re-invest in the new company?
It is important to define early on in your business purchase process what your most critical business purchase criteria are and what attributes of a company are “deal makers” or “deal breakers”. Companies with noteworthy attributes that did not make your critical attribute filter list will have to be evaluated on their own merits.
You will find that once you are actively involved in finding your “ideal” company to buy that every purchase candidate is different and each purchase opportunity you initially disqualify with this list will generate another disqualification question you did not think of before. Disqualifying acquisition candidates is truly an iterative process. There are no standardized procedures or required evaluation sequences in this initial s
Franchising a business is the easiest way to get started on your entrepreneurial quest. It is basically just piggybacking on the success of someone else’s idea and replicating the same set of programs proven and tested over time. You will not have to think so much about product development and the like.The surest way to find out if a franchise will work in another location is to study and compare the demographics of the people within the business environment. You have to know if the products or services you will be introducing are needed or attractive to the nearby population. Can people afford to shop at your store? In comparison to the orig
Suggested Initial Acquisition Qualification Questions:
INITIAL / BASIC QUESTIONS:
* Why is the business for sale?
* How long has it been for sale?
* Has there been other formal purchase offers made to date?
* Will the business sale include any transfer of real estate?
* What is the ownership structure of the company?
* How is the company legally organized?
* Who with the business will be involved in the negotiation of the sale?
* What are the owners desired transition plans?
* Is senior management willing to stay and invest in the new company?
* Does a new company leader candidate exist in the company now?
* Who knows the business is for sale? How confidential is this subject?
* Is there any known outstanding litigation or environmental concerns?
BUSINESS PROFILE QUESTIONS:
* Are all products manufactured “in house”?
* What % of products or services are “custom” or “made-to- order”?
* Is there proprietary technology?
* Any protected technology or patents, existing or pending?
* How many full time employees?
* Locations of all office/ manufacturing sites?
* Is the labor force organized in any form?
* What are the financial/ technical barriers to entry of this business?
* Are there purchase contracts? If so, are they assignable?
FINANCIALS:
* What financial information is available?
* Income statements and balance sheets for last 3 years?
* Are the company’s financials audited, reviewed or internally compiled?
* Are the inventory and accounts receivable in a healthy status?
* What is a replacement cost estimate for the fixed assets?
* Are there forecasted financial performance documents?
MARKETING AND SALES:
* Assuming investment, how can the business be doubled?
* How are products sold? Direct? Agents? Distributors?
* What % of revenues are domestic?
* What % of total revenues are from the top 5 customers?
* What is the company’s estimated market share?
* Who are the primary competitors?
* Are there noteworthy new products being developed/ introduced?
TERMS:
* What is the current business valuation? How is it defined?
* Will the owner(s) carry a note?
* Will the owner(s) also accept an “earn-out” portion?
* Is the owner willing to re-invest in the new company?
It is important to define early on in your business purchase process what your most critical business purchase criteria are and what attributes of a company are “deal makers” or “deal breakers”. Companies with noteworthy attributes that did not make your critical attribute filter list will have to be evaluated on their own merits.
You will find that once you are actively involved in finding your “ideal” company to buy that every purchase candidate is different and each purchase opportunity you initially disqualify with this list will generate another disqualification question you did not think of before. Disqualifying acquisition candidates is truly an iterative process. There are no standardized procedures or required evaluation sequences in this initial
Is it really important to measure a business performance? I think if you will even need to purchase someone's business, then you will never ask this question and the answer will be "Yes! Sure!", because if you do not measure the performance of the business that you are going to purchase you will be going blind. Then why people don't like to measure the performance of their own businesses?When you are inside, you see a lot, I would say you can see to much business and business mechanism, you are flowed with unimportant data, you having too many things to care about and sometime you even don't understand where this business is going. If you are
* What are the owners desired transition plans?
* Is senior management willing to stay and invest in the new company?
* Does a new company leader candidate exist in the company now?
* Who knows the business is for sale? How confidential is this subject?
* Is there any known outstanding litigation or environmental concerns?
BUSINESS PROFILE QUESTIONS:
* Are all products manufactured “in house”?
* What % of products or services are “custom” or “made-to- order”?
* Is there proprietary technology?
* Any protected technology or patents, existing or pending?
* How many full time employees?
* Locations of all office/ manufacturing sites?
* Is the labor force organized in any form?
* What are the financial/ technical barriers to entry of this business?
* Are there purchase contracts? If so, are they assignable?
FINANCIALS:
* What financial information is available?
* Income statements and balance sheets for last 3 years?
* Are the company’s financials audited, reviewed or internally compiled?
* Are the inventory and accounts receivable in a healthy status?
* What is a replacement cost estimate for the fixed assets?
* Are there forecasted financial performance documents?
MARKETING AND SALES:
* Assuming investment, how can the business be doubled?
* How are products sold? Direct? Agents? Distributors?
* What % of revenues are domestic?
* What % of total revenues are from the top 5 customers?
* What is the company’s estimated market share?
* Who are the primary competitors?
* Are there noteworthy new products being developed/ introduced?
TERMS:
* What is the current business valuation? How is it defined?
* Will the owner(s) carry a note?
* Will the owner(s) also accept an “earn-out” portion?
* Is the owner willing to re-invest in the new company?
It is important to define early on in your business purchase process what your most critical business purchase criteria are and what attributes of a company are “deal makers” or “deal breakers”. Companies with noteworthy attributes that did not make your critical attribute filter list will have to be evaluated on their own merits.
You will find that once you are actively involved in finding your “ideal” company to buy that every purchase candidate is different and each purchase opportunity you initially disqualify with this list will generate another disqualification question you did not think of before. Disqualifying acquisition candidates is truly an iterative process. There are no standardized procedures or required evaluation sequences in this initial
Step 1. Spend two hours a day researching out “online marketing success” on the internet using search engines. Please don’t forget to leave your credit cards in a locked cabinet at home, away from your reach so you can truly begin to learn what others are saying about marketing success on the net and not drain your wallet or increase your debt to do so.Step 2. Find someone you would like to duplicate.No. That doesn’t mean you have to produce a twin, although I do know two extremely successful twins that are in network marketing and they are the first to say that they truly duplicated themselves i
FINANCIALS:
* What financial information is available?
* Income statements and balance sheets for last 3 years?
* Are the company’s financials audited, reviewed or internally compiled?
* Are the inventory and accounts receivable in a healthy status?
* What is a replacement cost estimate for the fixed assets?
* Are there forecasted financial performance documents?
MARKETING AND SALES:
* Assuming investment, how can the business be doubled?
* How are products sold? Direct? Agents? Distributors?
* What % of revenues are domestic?
* What % of total revenues are from the top 5 customers?
* What is the company’s estimated market share?
* Who are the primary competitors?
* Are there noteworthy new products being developed/ introduced?
TERMS:
* What is the current business valuation? How is it defined?
* Will the owner(s) carry a note?
* Will the owner(s) also accept an “earn-out” portion?
* Is the owner willing to re-invest in the new company?
It is important to define early on in your business purchase process what your most critical business purchase criteria are and what attributes of a company are “deal makers” or “deal breakers”. Companies with noteworthy attributes that did not make your critical attribute filter list will have to be evaluated on their own merits.
You will find that once you are actively involved in finding your “ideal” company to buy that every purchase candidate is different and each purchase opportunity you initially disqualify with this list will generate another disqualification question you did not think of before. Disqualifying acquisition candidates is truly an iterative process. There are no standardized procedures or required evaluation sequences in this initial
Have you ever seen an orchestra producing some truly amazing and inspiring music. I remember seeing an orchestra playing at the Sydney Opera House (and for all the overseas people it is something you must do whilst in Australia). I was so impressed with the way all the different instrumental groups blended together to make this magical sound.The conductor’s role was very important in keeping all the sections on task and in time. However, all the groups must be able to work together (compliment each other) to produce beautiful harmonics. In a good orchestra, the wind instruments are not in conflict with the brass or percussion instruments. They
* Will the owner(s) also accept an “earn-out” portion?
* Is the owner willing to re-invest in the new company?
It is important to define early on in your business purchase process what your most critical business purchase criteria are and what attributes of a company are “deal makers” or “deal breakers”. Companies with noteworthy attributes that did not make your critical attribute filter list will have to be evaluated on their own merits.
You will find that once you are actively involved in finding your “ideal” company to buy that every purchase candidate is different and each purchase opportunity you initially disqualify with this list will generate another disqualification question you did not think of before. Disqualifying acquisition candidates is truly an iterative process. There are no standardized procedures or required evaluation sequences in this initial step.
Take the time and effort to develop and write your own business disqualification questions. The return on your time invested in development of a tool of this nature will allow you to look at more potential deals in less time.
Finding business purchase candidates is also very critical to meeting your acquisition objectives. Locating companies that meet your EXACT purchase criteria is a major challenge. Also investing the time and effort to generate quality acquisition candidates cannot be over emphasized. Creativity, discipline and tenacity will yield you the best results.
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