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Acquiring another business can accelerate the growth of a company and expand their market however it can present challenges to the startup. First, a lot of pre-Series B companies do not have the financial resources to be able to afford an acquisition. Even if they do the integration of a new team or customers, as well as processes, can be a big task.

To ensure the highest possible results from an acquisition, businesses should take a few steps to prepare for an acquisition that is successful. For instance, it’s essential to create anticipated future projection tables that will help determine whether an acquisition will add value for the business. Using these tables, a company can understand how an acquisition will impact its P&L and balance sheet. It is also important to think about the possibility of synergies and economies of scale. If a firm is able to save money by consolidating its offices, factories, or projects, it can utilize the money to invest in other projects.

It is important to determine the value of a company that is acquired, in addition to project costs. This will enable the company to negotiate price with the seller. To find the most competitive price, a company must find and study potential targets that meet their requirements. This could be a competitor or a company that has the most advanced technology, products or customers that can assist in growing the company.

Business brokers can help streamline the process of selecting potential targets and assisting companies select them. They are armed with a wealth of knowledge about different industries and their business values. They can also connect businesses with potential buyers and vice the reverse.