Growth by Acquisition
Originally published: 02.01.08 by Mike Coyne
Identifying and acquiring businesses takes finesse.
There are many ways to get into business or to expand an existing business. Some business owners prefer internal growth through gradually increasing sales. Other owners prefer to grow by acquiring one or more existing businesses. If you are acquisition-minded, there are several things you must be aware of in order to facilitate a successful transaction. For some businesses, low-hanging fruit may be ripe for the picking. It may happen that an existing hvacr business in or near your service area is placed on the market. If this is the case, it would not be unusual for the potential seller, or a broker hired by the seller, to contact you. However, as a successful business owner with acquisition on the mind,you will probably not be willing to sitidly by, waiting for that moment to arrive. Instead, you will want to take a more active role in finding a business to acquire. In this regard, you should ask a business broker to look for a business for you. Alternatively, if you know your competitors and their owners, you may be in a good position to determine who might be interested in selling. Consider whether any
Michael P. Coyne is a founding partner ofthe law firm, Waldheger Coyne, located inCleveland, Ohio. For more information onthe firm, visit www.healthlaw.com, or call440-835-0600.
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