Acquiring a company a long way from home

by a searcher from Loyola University of Chicago

2 years ago

If we are targeting a large region surrounding the home state in which we are operating, and a better deal is in a neighboring state, what should we take into consideration when making an acquisition in that state? Obviously different laws & regulations and longer travel from home, but what else is important to pay attention to?

I'd love to hear from anybody with prior experience on this, thanks!

5 likes
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15 comments

searcher from University at Albany, State University of New York - School of Business

I have one 2 hrs from me, one 2 hrs and a third soon at 4 hrs, but all in the same state. I've only turned down other states because it's not part of the 1-3 yr plan. My point being, I'd ignore everything beyond: does it fit your plan. Everything else is fixable.

2 years ago | like reply | 1 like

searcher from The University of Michigan - Stephen M. Ross School of Business

A lot of good advice here. For what it’s worth, I acquired a business with its headquarters a two hour drive away. Even though there was a strong management team in place there, building trust and establishing relationships with the team was key for me during the first six months. As I didn’t want to spend four hours a day commuting (I know some have done it), I spent four days a week on site, staying overnight in a hotel during the first six months. It definitely paid off… I have been averaging one day a week there now and a four hour commute once a week is not bad at all. Additionally, I am fortunate to be surrounded by a phenomenal team.

2 years ago | like reply | 2 likes

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