Your successful strategic planning and strategy of determinate growth, ny bagel complaints two possibilities are available:
- Organic growth : own, with your team, your production .
- The external growth by acquiring the assets of another company .
See the benefits and success factors for a company that opts for external growth.
1. Speed. You can access almost instantaneously to new products, patents, ny bagel complaints trademarks, representatives or customers that you would have taken months or even years to develop clean.
2. Synergie ( 1 +1 > 2). This is an increase in revenue or decrease costs following the acquisition. Thus, if you distribute flour and you buy a sugar dispenser, you could access new customers for your meal : those who bought sugar from your target but not flour. Likewise, you may not need to keep multiple warehouses or offices.
ELEMENTS OF SUCCESS
1. Identify the ideal target. ny bagel complaints To do this, evaluate the different targets with factual criteria : alignment with your strategy, agree with your financing capacity, size, geographical complementarity, shareholders will sell ...
2. Carry out due diligence. To avoid unpleasant surprises, follow upstream to a detailed review of the target: a financial and legal standpoint but also business ( customer portfolio, Customer ... ), technical, environmental or human (quality teams ... ). These elements will help you confirm and adjust your offer.
3. Paying the right price. Growth has a price but not any ! A company does not have a single price but the value that each purchaser is given, based on identified synergies. ny bagel complaints A detailed business plan, including synergies, and an analysis of recent transactions will indicate the highest value just for you. Your negotiating skills will determine the final price.
4. Consider upstream integration .
Prepare in advance the integration of your target area .
The procurement process does not end the transaction : much work remains to be done : team integration, systems ... Prepare in advance the integration plan your target to ensure a smooth transition and avoiding irritants ny bagel complaints
Even if 1 +1 > 2, several studies have shown that a majority of acquisitions destroyed value. Put the odds in your favor by preparing a detailed and factual your purchase .
Before you engage seriously in the process of acquiring a business, you need to first check its financial statements, projections and debt level ny bagel complaints .
Although these elements determine so paramount value of a company, they are however not only to the condition. Indeed, the value of a business varies depending on a number of factors and its determination based on several principles :
VALUE 1. TIME AND ARE CLOSELY RELATED
Internal and external changes experienced by the company over time affect its prospects for success, consequently altering its value. However, the standard evaluation parameters provide a reliable assessment ny bagel complaints .
2. CASH FLOWS ARE DRIVERS
Earnings before interest, taxes, depreciation and amortization (EBITDA ) should not be the only evaluation measure. The cash flow provide a more accurate assessment. So, a careful analysis of reinvestment in annual maintenance must be performed.
3. CONTRACT HAS DECIDED
Potential buyers (market) dictate the required level of performance ; in fact, they are the ones who evaluate the risks and benefits of the company, and thus determine the price they are willing to pay ny bagel complaints.
4 ESTIMATED RISK. EVERYTHING DEPENDS ON WHICH SIDE IS
Buyers have a perception of the value of different from that of the vendor : Generally, the seller will underestimate the risk level of the company.
Potential buyers base their assessment on the value of commercial traffic (commercial goodwill) rather than on the personal goodwill (personal goodwill) .
6. PILLAR ONE ? RISK INCREASES .
Look for companies with a strong, experienced and diverse ny bagel complaints.
Preferably, a company should not base its activities on a single actor (ie, the manager ), as well as multiple pillars supporting structure are preferable to a single pillar : if it collapses, this is all the work that yields. Thus, preferably looking for companies with a strong, experienced and diverse.
LIQUID 7. ... THIS IS THE SOLID !
The value of a company also varies depending on its ability to rapidly release funds in cash ( liquidity ) .
8. Guarded optimism
Be careful not to overestimate the synergies that may result from mergers and acquisitions ! The integration of operations may have unexpected pitfalls. Be a reasonable level of confidence and realistic views .
In addition, it is important to note that the value drivers of a business include brand names or trademarks it holds, its workforce, its management team, the relationship it has established with its customers and suppliers, production capacity, its location, its infrastructure, (if any) patents, ny bagel complaints technological tools and know -how. Risk factors include meanwhile the concentration of revenues with few customers, competition, economic and industry factors and, of course, the small number of value drivers .
Like any important strategic transaction, the acquisition of a company is based, first and foremost, on the basis of prudence and common sense.