WHAT IS YOUR ACQUISITION PROCESS?
We're in the process of acquiring a few businesses and I was interested in what your overall process looks like. Ours tends to look like this:
Identifying Targets Preliminary Review and Screening Sign NDA’s Review and Analyze Preliminary Financials (30,000 ft review of 3-5 years) Prepare and Execute LOI In-depth Due Diligence (obtain and analyze all financial records and other imperative ancillary factors) Develop Financial Model (Balance Sheet, Income Statement, Cash Flow etc. then integrate into Discounted Cash Flow, which will determine a range of values for the business) Valuation (perform a thorough financial analysis, evaluate industry/direct/local market trends, review comparable transactions, consider other factors, consult advisors etc.) Define Financing Strategy Seek/Obtain Financing Negotiating (negotiate with seller, propose course of action, schedule and terms) Closing (prepare acquisition agreement, work with advisors, legal, accounting etc.) Close Integration with new co (finances, organizational structuring, roles and responsibilities of adopted or new employees, culture etc.) On to the next