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Buying A Business

MATCH MADE IN HEAVEN OR…

On Buying a Business

So, you’re thinking about buying a business? This could be a big opportunity. Chance to increase, maybe even double your revenue. And you eliminate a competitor in the process. Hmmm…new customers in store. Sounds like a win win for you. However, you might want to take a step back. Ask yourself a few questions.

First of all, are you buying the assets or the business? Let’s say your seller is an LLC or corporation. Our advice? You don’t really want to buy stock in the business. There could be legal problems lurking just around the corner. That said, if it’s the only way to get the deal done, you’ll have to negotiate knowledgeably. Okay? Next question?

Ever consider the work involved in combining two businesses? What will the message be to customers? Your employees? And you can’t forget your vendors. Then there’s the lease. How will you renegotiate it with the seller? And your customer contracts? Are they easily transferable? What if you don’t need all the employees to stay? Oh, and one last thought. Will those risks that were overlooked in early conversations, suddenly appear after the deal’s closed? Feeling a bit overwhelmed?

Questions aside, let’s say you go ahead with the merger. Before you do, just a couple of thoughts. Are your two cultures a good fit? Will anyone be resentful? And while you’re figuring out all of the above, who’s taking care of the store? Serving your clients? Making sure they’re happy? And about eliminating that competitor…in a market where contracts go out to bid, companies are still required to seek a certain number of proposals.

If you’re having any second thoughts, let us put your mind at ease. Yes, there are risks but there are also rewards. Buying or merging with another company could put you and your business in the driver’s seat. To ensure that it does, give us a call. We see good things down the road.

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News & Insights

How to Spot Warning Signs that a Deal is in Danger

How to Spot Warning Signs that a Deal Is in Danger

Read the article in The Middle Market.Bringing an M&A deal across the finish line can be a long and perilous road. No matter how certain a transaction might initially seem, there’s always the possibility that one party can abruptly change its plans and drop out...

3 Signs an M&A Deal Is in Trouble

3 Signs an M&A Deal Is in Trouble

Read the article in CFO.Spotting signs of trouble early is critical for CFOs to prevent a deal from derailing. Not every CFO will experience M&A firsthand during their career. But those who do typically find that their existing skillset makes them a crucial...

Oaklyn Consulting

Analyzing Broad vs. Narrow M&A Deal Processes

We respect the unique M&A market insights that Sutton Place Strategies, an affiliate of Bain & Company, creates from its business development work with PE firms. SPS Founder and CEO Nadim Malik gave a presentation at ACG Boston's M&A Outlook forum in...

Oaklyn Consulting

Who We Helped in 2022

At the start of every year, we at Oaklyn Consulting like to look back at the past 12 months to reflect on projects accomplished and lessons learned from our clients. Building on our achievements from 2021, Oaklyn Consulting worked with 34 organizations in 2022 on...

Oaklyn Consulting

CFO: 1st Time M&A: 3 Challenges CFOs Will Face

A CFO can go through an entire career without doing a deal, but when your company puts it on the table, you must be ready. Read my piece for CFO below. Read the article in PDF.CFOs are a source of accuracy within an organization — essential for providing data...

Oaklyn Consulting

CFO: 3 Roles CFOs Must Learn to Be an M&A Player

Understand the areas where CFOs can make a meaningful contribution and where they should step back. I enjoyed sharing my thoughts with CFO. Read the article in PDF.CFOs are the truth-tellers of the executive team. They bring facts and certainty to the company’s...

Oaklyn Consulting

CFO: 3 M&A Pitfalls CFOs Must Avoid

While the element of risk cannot be completely mitigated, CFOs can sidestep obstacles and keep the M&A process moving toward a positive outcome. Thanks to CFO inviting me to share my thoughts! Read the article in PDF.Deciding to move forward on a company merger...

Oaklyn Consulting

Who We Helped in 2021

We learned these 10 lessons from our 30 clients last year and believe they reflect the times: 1. Companies faring well and poorly are evaluating strategic alternatives We worked with 14 clients that came to us with questions about strategic alternatives, because...

Oaklyn Consulting

Congratulations to ICON Medical Network, Again

We advised Janet Elkin’s ICON Medical Network on the second deal this year — the acquisition of Independence Anesthesia Services, a transaction announced on May 12. Our role on both deals was to be Elkin’s corporate development staff -- managing due diligence and...

Oaklyn Consulting

Congratulations to ICON Medical Network

We advised Janet Elkin, a healthcare staffing innovator, on her acquisition of ICON Medical Network, a deal announced on March 16. Our role was to be Elkin’s corporate development staff -- managing due diligence and the deal process, building financial projections,...

Oaklyn Consulting

CFO: M&A Deal Price: Agreeing to Disagree

Completing a merger or acquisition now could be a lifesaver for some struggling businesses during the current economic climate. For companies in a position to buy, agreeing to disagree on price could allow them to complete a large acquisition during a period of...

Oaklyn Consulting

Who we helped in 2020

As we all look forward to the possibilities of 2021, it’s tempting not to look back on 2020 at all, happy for it to disappear in the rearview mirror. But sometimes a review can hold helpful lessons. We found that the turmoil of the last year provided opportunities...

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