Corporate
investors are companies who want to acquire businesses for a variety of
reasons. While corporate investors also want to see a return on financial
investment, they will often have additional reasons for acquisition. For
instance, a company may want to develop a national brand by acquiring
independent businesses in strategic parts of the country. Other companies may
be looking to add functionality to their existing operation: for instance, a
packaging company acquiring a logistics business, or a property management
company taking over a commercial cleaning company. This kind of acquisition can
help cut costs by bringing capability in-house, or it may help to make the
business more efficient by having direct control over how the acquired business
runs. Sometimes, a corporate investor will be looking for specific expertise to
add to its own business and will be attracted by the quality of people working
in the target company – for instance specialist engineering talent.
So it is
important when preparing your business for sale to look at all the assets that
might make your company attractive to an investor, not just the last few years’
profit.
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