Every organization wants to grow in its operations and asset base in order to serve more customers in larger geographical areas. In a bid to make this a success, firms may be forced to buy various assets which increase their capacity to handle larger production demands.There are also times when purchase of an existing business may be necessary to make it easy to venture into a new line of business and also reduce competition.Purchase of businesses as going concerns is increasingly becoming popular with firms taking deliberate measures to merger with other companies to increase their market share and as they combine their competencies to make a stronger organization.It is necessary to hire an acquisition consultant in such situations.
Valuation of continuing businesses may sometimes be quite subjective since it involves the fair value of available assets in addition to goodwill. You need an expert to establish whether such a firm is fairly valued to ensure you pay a fair amount. Such consultants are outsourced since these are not part of the routine activities of many firms to keep them on their payroll.
The terms of engagement must be prepared in way that ensures they are foolproof to avoid incidents of owners of the target firm being disadvantaged. The merger process is a long one and requires the consultants to work closely with other professionals such as a staffing consultant and a lawyer. This makes acquired and new workers comfortable with the new arrangement.
Target firms also need to develop mechanisms aimed at discouraging an interested organization. All firms are quite different and should therefore hire professionals who have experience developing resistance mechanisms. Some stakeholders who may not want to transfer stake to a single stakeholder can seek advice on ways of discouraging similar firms.
Firms which deal in buying and selling of ailing businesses always need a professional to establish whether some acquisitions are viable. Complex computations and analyses are conducted to establish various things of interest. The disposal process is also overseen by an expert to make sure they get a good deal.
Expansionary decisions need buying of special assets to increase capacity. For instance, airport operators may need to expand operations through buying new planes. In addition they hire these experts to provide airport planning services when the need to expand and entire airport arises.
It is necessary to seek the services of an acquisition consultant to develop strategies for evaluating the possible opportunities that potential assets have. This requires a comprehensive market survey. A SWOT analysis for the target firm is also necessary and is done with assistance from these experts.
Author: Chandra ZaneThis author has published 4 articles so far.