John Hill, our financial guru, has just helped a client through a potential aquisition. It didn’t come off but he shares his experience with us below:
Why would anyone want to acquire another company? It could be a quick way to increase turnover and market share and possibly, thereby, removing a competitor? The process is a minefield of legal and financial requirements.You will need a solicitor and accountant who are experienced in mergers and acquisitions, and they don’t come cheap. It will be an expensive operation, and some proportion of the fees will be payable in advance.The process can take a long time and involve many meetings and could fail at any time, but will probably end up in some solicitor’s office late at night with loads of coffee and sandwiches haggling over some comparatively minor clause in a frequently rewritten sale document. If you see an opportunity; seek plenty of advice; sleep on it; take more advice, then go for it. Good luck!!