It’s Business, And It’s Personal

Planning for success when buying a business

On Behalf of | Sep 19, 2018 | Buying & Selling Businesses |

When businesses in North Carolina plan mergers and acquisitions, they want to make the most of the potential profits that could derive from a deal. However, a large number of these projects, between 70 and 80 percent, fail to live up to the hopes that business owners have for their profitability. There are a number of factors that can contribute to a disappointing outcome in a business deal. In some cases, the acquiring owner or company may not have known all of the weaknesses of the firm it bought; however, in most cases, the issue is with a lack of planning rather than an inherent flaw.

By planning in advance for the next steps after successful mergers and acquisitions, business owners can help to ensure that their next deal will be a real success. Experts advise that the first 100 days of a merger can be the most critical time to set the right stage for growth and expansion. If a business fails to gain value in the three months following the acquisition, it can be far too easy for the project to become stagnant, losing momentum before it had the chance to reach its full potential.

This planning process should begin long before contracts are finalized and the deal is concluded. By having an action plan in place during the due diligence phase, a business can be ready to hit the ground running after an acquisition. This kind of 100-day plan can address logistical concerns about integrating business systems but also provide a strategic vision.

Buying a business can be a complex process. A commercial law attorney may advise business owners on key contract terms and protect their interests as well as providing strong representation during the negotiations process. By working with a lawyer, businesses may be able to lay a firm foundation for a successful project.