At any moment there are hundreds of prospective buyers competing for acquisition opportunities. But only a fraction of these are qualified buyers. Qualified buyers meet the criteria of the seller, have the financial capability to purchase the business, and have the capacity to take on the acquired assets and clients. They also have an understanding of the M&A process and can craft a compelling letter of inquiry. In short, qualified buyers have Acquisition Readiness. 

Let’s assess your Acquisition Readiness.

Beyond “qualified,” the right buyer understands their value and how to strategically benefit from an intended acquisition. They will articulate these points to the seller and stay committed to a smooth transaction.

Before you can target an acquisition, you need to understand your own business and how an acquisition supports your short- and long-term growth goals.

Upon defining your acquisition goals, it’s time to identify your target and make an inquiry. On average, Open Market Opportunities receive 50-100 inquiries within the first week. This is your first impression to the seller, so how can you stand out? The most successful inquiries have a few things in common:

Winning the acquisition is just the first half of the journey. The transaction and transition process requires patience, attention to detail, and a collegial attitude. Make sure your team is stacked with industry-seasoned professionals to avoid any surprises. While each step of the process is critical, there are five key areas that should garner special attention:

How did you do? Acquisition success requires knowledge and preparation. This is something our team at FP Transitions’ provides through our Equity Management Solutions® (EMS™) membership. We help hundreds of advisors understand their value, identify custom KPIs, benchmark their business growth, and identify strategic acquisition opportunities.

In addition to improving your Acquisition Readiness, an FP Transitions Equity Management Solutions® membership gives you access to acquisition-specific resources and guidance throughout the deal process.