Kenneth Loeb Urges You To Consider These Factors When Acquiring a Business

OTTAWA, ONTARIO, CANADA, April 19, 2021 /EINPresswire.com/ --

Acquisitions are one of the most important economic activities a business can carry out, and that goes for both buyers and sellers. Kenneth Loeb, a business expert who has successfully overseen many acquisitions, is going to go over vital factors that should be considered when acquiring a business.

“Before getting into specifics, I’d like to state that it’s essential to do your homework,” Kenneth Loeb argues. “Don’t let your emotions determine the sale, but instead facts and reason.”

Perhaps the first question anyone should ask when looking at a business is “why is the owner selling the business?” Could the owner fear future market threats? Is there underlying instability in the company or insurmountable external pressures? If so, these factors could dramatically increase risks. It’s best to find healthy, viable companies to purchase.

“Often, the best companies to purchase are ones being sold by older individuals who want to cash out,” Kenneth Loeb points out. “They aren’t exiting the company because it’s in a bad spot, but instead because they want to enjoy their golden years.”

Another factor to consider is how the acquisition will impact your market share. Often companies buy other companies to acquire their customers and position in the market. Doing so can increase economies of scale and fuel expansion. However, if markets are highly competitive and customers are willing to quickly change to new suppliers, market share can be difficult to acquire through acquisition.

Regardless, pouring through the financials and balance sheets is important. Assets, liabilities, revenues, profit margins, and more will all have a major impact on the value of the company and whether an acquisition is a wise idea.

“Definitely, you’ll want to spend a lot of time looking at the financials,” Kenneth Loeb states. “Also, make sure you try to verify that the financials are accurate.”

Kenneth Loeb Talks Human Resources

It’s not all about numbers and market share, however. These days, the knowledge economy generally makes up the most valuable and profitable portion of the global economy. And when it comes to knowledge, human talents and resources are indispensable.

“People are the most important factor for many businesses,” Mr. Loeb says, “so you’ll want to get a good feel for the human talent. This includes managers and leaders, yes, but you have to consider everyone.”

Understanding the human factor is especially important when it comes to integration. And before acquiring a company, you should closely consider how you’ll integrate the purchased firm with your existing operations. If merging the two companies will result in a lot of hassles and waste, you should take that into account before making an acquisition.

“At the end of the day, your integration plan will go a long way towards determining whether an acquisition is a success or a failure,” Kenneth Loeb points out. “Integration should be a consideration from the get-go.”

Caroline Hunter
Web Presence, LLC
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