7 key questions to assess an acquisition

One of the most important aspects when evaluating a business for sale is knowing what questions to ask the owner. As part of your search, you’ve likely gathered information on various businesses and created a shortlist of top candidates. One of the next steps is to delve deeper into the offerings. Besides analyzing the available financial information, it's crucial to have direct contact with the person (or team) responsible for running the business.

This first-hand information gives you insight into the actual state of the business you want to purchase. Your questions should be precise and provide a complete picture of how the business operates, how revenue is generated, and how it yields sufficient income for the owner(s).

7 questions to ask the owner when evaluating a business for sale:

1. Why are you selling the business?
2. How do you get compensated as a manager (salary, dividend, expenses, or other)?
3. Do you have a clear cash planning?
4. According to your knowledge and experience, what are the biggest commercial challenges for your sector and business?
5. What are the most valuable assets of your business?
6. What is the nature of your customer base (B2B/B2C? Regular/changing clientele)?
7. Who are your main competitors?

Investing time in meaningful contacts with the owner and obtaining answers to these questions gives you a much clearer picture of what the business has to offer. Besides determining the value of the business for sale, the due diligence process will also help you determine if the acquisition is truly worth it.

Are you looking for guidance and advice on purchasing an existing business with a sales value of less than € 500,000 (excluding commercial real estate)? Overnamemarkt and its partners are here to help!

Three crucial questions play a role in every acquisition:

1. Am I not overpaying for this acquisition?
2. How can I finance the acquisition price?
3. Are there no 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 above all to deliver a detailed advisory report tailored for small businesses. This includes an evaluation of the value, financing opportunities, and due diligence. For transactions with a higher value, we are happy to introduce you to specialized acquisition advisors.

Discover the roadmap for this guidance process for small business buyers on our website.