Getting acquired by a big company requires severe preparation from a startup. A startup needs to be prepared for what lies ahead and attract quality companies for acquisition. Here are 6 important things to do to prepare your company for acquisition:
- Start preparing a strategy
Planning ahead and laying down a well-detailed strategy for acquisition can help your business to look more attractive. You must address even the smallest details of your company, and make changes to improve or resolve any small issues. This will make your business sellable and it will be easier to start the acquisition process.
- Clean up the company’s act
A company will be interested in your business’s acquisition only when it is ready. If the company books are chaotic or the systems are out of date, any potential buyer will perceive it as a risky investment. It is important to document your policies and procedures so that whoever takes over will immediately know how to run the business. You must onboard experienced accountants and lawyers to make sure your business is in order.
- Focus on your company’s profitability
Companies that wish to start acquisition must be profitable and reliable. If you’re trying to sell your company, focus on making your company profitable for the acquirer. If your business is running in losses, no company will wish to buy it and acquire risk and bad investment.
- Determine profitable product or service and buyers
Focus on a profitable product which attracts sellers, has a prime location, and has demand in the market. This will make your business highly attractive and prime candidate for acquisition by a big company. Poor fits between companies and buyers turn into drains on resources, time and morale. Bad fits usually spell disaster for everyone involved, accompanied by a loss of revenue, customers, employees and time. Walk away from a buyer who seems like a poor fit and focus on buyers who are profitable.
- Be prepared for due diligence process
Get due diligence process done for your systems, culture, protocols and personnel. Before you plan to make yourself as transparent as possible with potential buyers, you must clean up your act before the potential acquisition process is started.
LetsComply can help you in getting prepared for the acquisition of your business. LetsComply has a team of CAs, CS, and experienced lawyers who can assist you with dealing with these important preparations. To know more, call us at +91-9717070500 or send us an email at firstname.lastname@example.org.