Acquiring a ready-made business usually involves less risk than starting a business from scratch. Therefore, the amount to be invested must be higher, so as to compensate the entrepreneur who has managed to overcome the early stages of the startup. Even more, if the company you intend to acquire is very profitable and already has good cash flow, you should propose significant acquisition value to be able to close the deal. In case of the right kind of governance training the options will be the best now.
It is very important that the entrepreneur hires a consultancy specializing in Mergers and Acquisitions, which will help him throughout the acquisition process, mitigating risks, optimizing the values invested, and making the right decisions at each stage of the acquisition process.
It is essential to perform valuation and due diligence to know the company’s potential and key risks and to be …