7 key questions to assess an acquisition

One of the key aspects when assessing a company for sale is knowing which questions to ask the owner. As part of your search, you've likely requested information on various companies and created a shortlist of top candidates. One of the next steps is to delve deeper into the offering. Besides analyzing the available financial information, it's crucial to have direct contact with the person (or team) responsible for running the company.

This frontline information gives you insights into the actual state of the company you want to buy. Your questions should be specific and provide you with a complete picture of how the company operates, how revenue is generated, and how it yields sufficient money for the owner(s).

7 questions to ask the owner when assessing a company for sale:

1. Why are you selling the company?
2. How are you compensated as an executive (salary, dividend, expenses, or other)?
3. Do you have a clear cash flow plan?
4. According to your knowledge and experience, what are the biggest business challenges for your sector and company?
5. What are the most valuable assets of your business?
6. What kind of customer base do you have (B2B/B2C? Loyal/fluctuating clientele)?
7. Who are your main competitors?

By investing time in meaningful contact with the owner and obtaining answers to these questions, you will get a much clearer picture of what the company has to offer. Besides valuing the company that is for sale, the due diligence of the company will help you determine whether the acquisition is truly worthwhile.

Are you looking for guidance and advice for purchasing an existing company with a sale value of less than €500,000 (excluding commercial property)? Overnamemarkt and its partners are ready to help you!

Three crucial questions play a role in every acquisition:

1. Am I not paying too much for this acquisition?
2. How can I finance the acquisition price?
3. Are there any hidden risks?

We provide independent and professional advice to help you make well-informed decisions. Our goal is not just to facilitate the transaction but especially to deliver a detailed advisory report tailored to small businesses. This includes an evaluation of the company's value, financing options, and due diligence. For transactions of a higher value, we gladly introduce you to specialized acquisition advisors.

Discover the step-by-step plan for this guidance process for small business buyers on our website.