Many companies try to grow their service area or distribution channels by acquiring a new company. While some businesses enjoy an existing relationship want to join forces, many others ones have plans to go out and find someone to work with. There are some steps that companies should follow when looking for another business to partner with.
You must be able to articulate what it is that you’re looking to gain by joining forces with another company.
You should be able to identify both long and short term goals that you expect to accomplish by acquiring another company. A short term goal may be that you want to strengthen a particular aspect of your company’s operations or to branch out into another service area. A long term goal may be that you want to become large enough to truly take on a competitor.
You can turn your attention to identifying potential suitors after you’ve identified what you’re looking to get out of your new partnership. You may want to limit your selections to companies that are in the same industry, operate in a desirable geographic area, that are a certain size or led in a certain way.
Take time to thoroughly vet any company that you’re looking to go into business with. You’ll want to ask people in your industry what they know about them and see what is being said about them online. If you feel comfortable that a certain company would make for a good partner, then you should reach out to them. You should be clear in outlining the benefits that both of you may derive by having a partnership in place with one another.
You should arrange to set up in-person meetings with your prospect’s leadership to gain some additional perspective about how you may effectively work together. You must discuss how you might go about integrating your two operations, how that may affect staffing and other matters related to scaling your business.
It’s once you’ve identified and decided on a partner company that you’d like to acquire that it may important for you to sit down with a business & civil litigation attorney to discuss your plans. Your Statesville lawyer can advise you of how to best go about legally acquiring a company per North Carolina law.