A well-structured acquisition plan is crucial for anyone who wants to make a risky business move, such as buying another business. The plan is a blueprint for making the deal a success, and provides an outline of how to go from where your current business is to where you would like it to be following the acquisition.
The first section should describe your reasons for purchasing and how it is incorporated to your overall business strategy. It should also describe the advantages of acquiring this particular company, and how you expect it to increase your profits. The next section will discuss the financial impact of the deal. This includes a breakdown of current sales and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation), debt – including personal financial try this https://firstdataroom.com/data-control-in-virtual-data-rooms-during-m-a/ guarantees, lease agreements, company forecasts budgets, plans and forecasts.
A brief summary of the target company as well as its management team is provided in this section. This will aid you in determining if the company is a good fit, and could be helpful in developing your negotiation strategy.
The last section outlines the targets and action items you need to meet to acquire the business. These should be specific, measurable and time-based. You might, for example you set a goal to discover 10 potential acquisitions within the next quarter. This will help you track your progress and ensure that you are on the right track to complete a successful acquisition.
