Introduction to Entrepreneurship through Acquisition (ETA)
The path to entrepreneurship is often synonymous with innovation, risk-taking, and starting something from the ground up. Far-sighted modern entrepreneurs are questioning
PATHS FRAMEWORK
The Preparatory Phase
Are You Prepared?
Successful Acquisitions Come Through Careful Preparation
Knowledge isn’t just power in acquisitions.
Knowledge is security. Knowledge is the difference between a successful acquisition and a waste of time and money. Knowledge is what guides you through the full process – from identifying a target to making a successful exit.
Here’s where you’ll find that knowledge. The preparatory phase of the PATHS framework furnishes you with all you need to know when you’re thinking about acquiring a business.
So let’s get started.
What Do You Need to Know Before Acquiring a Business?
In a word – everything.
Lack of forward planning is the #1 reason behind failed acquisitions.
Let’s start with a few basic questions.
Then, let’s move on to the resources that will ensure that you don’t fall victim to this.
What Are Your Goals?
Why do you want to buy a business? What do you plan to do with it? Every detail of your plan needs to align with what you want to achieve. If you aren’t funneling your short-term efforts toward a long-term plan, you haven’t thought this through. Time to start thinking.
What Type of Acquisition is Right For You?
An expert understanding of how different acquisition strategies suit different businesses is mandatory. You’ll find a comprehensive overview of how different types of acquisitions work, where they’re best employed, and their strengths and weaknesses below.
How Do You Turn an Acquired Business into a Success Story?
The real challenges begin once the deal is sealed. This is perhaps the most often-overlooked part of the acquisition process. Buying businesses that then decline and fail is an expensive habit. It’s also a world of stress that you can avoid with some careful advance planning. “Growing a business” sounds easy enough, right? It’s anything but. Our library of informative guides, case studies, and analyses will show you why – and how you can do things differently.
Do You Know Your Industry?
Remember that once you’ve acquired a business, you’ll need to run it. You’ll need to choose an industry that suits your strengths. You’ll need to understand how these businesses work and what unique challenges your chosen industry will pose. And you’ll need a cast-iron plan to address those challenges to ensure a successful transition and a smooth exit.
How Will You Finance Your Acquisition?
Where is your funding coming from? Why should your backers support you? Can you show them how you’ll manage the acquisition from the initial approach to taking over the business? If not, you’ll find yourself short of the funding you need. Your knowledge and understanding are the security that your backers need.
What’s Your Exit Strategy?
Before you enter a transaction, you need to know how you plan to manage your exit. Every step you take is along a ticking timeline. It’s leading toward the best moment to exit an acquired business. Here, you’ll learn how to identify the opportune moment, protect yourself against risks, and ensure that you build a reputation as a trustworthy, knowledgeable buyer.
A New Route to Business Ownership: How Acquisition Differs from Traditional Entrepreneurship
There is no easy path to owning, running, and exiting a business. Seeing your efforts pay the kind of dividends that set
The Strategic Logic Behind Various Types of Acquisitions
Before you search for a company to acquire, you must address why and how the acquisition will benefit you – and any
Identifying Your Perfect Match: How to Choose the Right Industry for Acquisition
Not all industries are equal in the eye of the acquirer It’s easy to overlook the importance of industry when you see
Unearthing Potential: The Art of Identifying Underperforming Businesses for Acquisition
Imagine this addition to your portfolio. A business with clear growth potential, a well-established management structure, solid cash reserves, reliable demand, and
Be Prepared
If there’s a topic on this page that you’re not 100% you could give an off-the-cuff presentation on, hold your horses. Before we move onto the analysis stage, you need to finish your preparatory reading.
In-depth learning and detailed analysis are central to the PATHS framework. Never miss a step – join the community today and keep abreast of all the most important conversations in M&A today!
PATHS Framework
- Preparatory Phase
- Analysis Phase
- Transaction Phase
- Harmonization Phase
- Strategy Exit Phase
