Winning Strategies: Overcoming Obstacles in an Acquisition
Mitch Evans, director of Graphic Arts Advisors, has some great advice on the main obstacles in the purchase of a printing business, but much of his advice is applicable to businesses in any other sector.
He sees the main obstacles as the below and advises on how best to overcome them.
Overvaluation – Excessively ambitious price aspirations
Too Much Debt – Places under pressure on finances
Property Leases – And the issue of transfer of lease
Excessive Valuation of Equipment
Customer Concentration -Too large a percentage of sales reliant on a small number of customers
Outside Sales Person May Leave- Reliance on external parties to generate sales
Pricing Differences – Locked-in prices
Vendor Wanting to Stay On Post Completion
The Financing of the Deal