One of the best ways for a business to grow is through acquisition. It’s not always easy, though, to know if acquiring a given business is a good idea. Fortunately, the inc.com blog offers some help.
Last week’s Ask Gerber feature, Scott Gerber gives the follwing advice to people thinking about buying a business:
- assess what it will do for the bottom line. The business you’re buying should be complementary to your existing business.
- Do your own due diligence work. Don’t just trust the current owner’s paperwork or word.
- Make sure it fits your brand strategy. You don’t want to contradict what you’ve already got going on.
- Consider keeping the management team. It will help with a seamless transition.
- Identify other advantages. Make sure you’re really getting something worth the cost.