Lets review the framework to ensure the Purpose of Acquisition…
Preparing to buy a business requires an objective and tactical approach on many levels. Proper planning starts with a straightforward appraisal of the financial health, wherewithal and capacity of your organization to absorb another company with minimal disruption to either ecosystems.
A close evaluation of how the tangibles and notably the conventional and digital intangibles could affect the synergies of a combined entity must be scrutinized to devise a realistic acquisition strategy.
Investor opting to buy a business must be able to justify why acquiring would be more beneficial than reinvesting back into the business. Acquisitions are generally pursued to either enhance the core operations or develop new verticals.