An organized acquisition plan is essential for anyone who wants to make a risky business decision, such as buying another business. The document serves as a blueprint to make the deal a success, and provides an data rooms easy path from where your current business is to where you would like it to be following the acquisition.
The first paragraph outlines the reasons behind the purchase and how it fits to your overall business plan. It is important to also outline the benefits of buying this company and how it can increase your profits. The next section explains the financial implications of a deal. This includes a breakdown of current sales EBITDA (Earnings Before Interest, Taxes depreciation and amortization) and debt, including personal financial guarantees as well as hire/lease agreements, forecasts of the company plans, budgets and forecasts.
A brief summary of the company you are interested in and its management team is included in this section. This will help you determine quickly whether the company is a good fit. It can also be helpful in creating your negotiation positions.
The final section will outline the objectives and actions you need to meet to acquire the company. These should be specific, quantifiable and time-based. For example, you might make a plan to find 10 potential acquisitions over the next quarter. This will enable you to monitor your progress throughout the course of the project, and ensure that you stay in the right direction for the success of your business acquisition.