Business plan for business acquisition

Use it to organize your thoughts, structure your ideas and compile a short but comprehensive strategic plan for any size and type of organization. Review the paper on this page before using the planner. Click here to see feedback from past users of this planning tool opens in a new window and click here to see a sample plan use back button on browser to return to this page.

Business plan for business acquisition

Sometimes the management group within the company seeks to purchase the company from the existing owners, or an outside group may be trying to acquire it. A business plan would be created to present to potential sources of capital—equity or debt—that may finance the transaction. In a situation in which the owners are trying to sell their company, they use a business plan to attract potential buyers.

The business plan includes a narrative section, compilation of financial history and projected financial results. Compile historical financial information. The past performance of a company—revenues and profits—are important in establishing the valuation of the company, or the purchase price.

Put together profit-and-loss statements, balance sheets and cash flow statements going back five years, if the company has been in business that long. Place these in the back of the plan after the narrative section. Talk about the products or services the company offers, the markets in which the company competes, and the position the company occupies in the industry.

Give some background on the history of the company, including when it was founded and how it has evolved. Include summary information about the current revenues and profits of the company. Talk about patents or other intellectual property that create lasting value for the enterprise.

Profile the management team. Provide biographical information about the key members of the team and the contribution they make to the organization. Present the acquisition plan. Make a compelling case about why the company will be able to increase its revenues and profits in the future.

Talk about favorable trends in the industry and how the company would benefit. Describe what changes in strategic direction could be made to bring about higher revenues and profits.

Showing the reasons why the company will increase in value post-acquisition is important for both potential buyers and for those entities that may provide financing. List potential cost savings. Many times when a company is acquired by another, cost savings can result from combining staff, facilities or functions of the two companies and eliminating duplication.

Again show profit and loss statements, balance sheets and cash flow statements. Warning A business plan for an acquisition contains confidential information about the company, including financial data and future plans. Make sure an attorney drafts a confidentiality agreement for people who review the Business Plan to sign.

Keep track of everyone who sees the plan. References Buying and Selling a Business: Klueger; About the Author Brian Hill is the author of four popular business and finance books:Six weeks later, armed with said detailed business plan, the business owner again took to the field of battle and shortly thereafter scored the necessary funding from another one of the “big four”.

There are dozens of sources of financing for the acquisition of nearly any business.

business plan for business acquisition

In fact, there’s a book. Business Acquisition Checklist. This Business Acquisition Checklist can be helpful to those entrepreneurs who consider buying (or selling) a business as a way to start or extend their own one.

A business plan for an acquisition contains confidential information about the company, including financial data and future plans.

business plan for business acquisition

Make sure an attorney drafts a confidentiality agreement for people who review the Business Plan to sign. You can use this Acquisition Plan template (iWork Pages + 3 Numbers spreadsheets) Klariti Ltd has created templates, forms, and documents for business, software development, and testing since What software did you use to create it?

We created the templates in Apple Pages and Numbers. Start your business with sample business plan, marketing plans, contracts, and proposals.

Learn marketing and download content for your website and blog. How to Create an Online Store: 10 Steps to Write your Business Plan By Natalie Beigel - January 14, Technology is drastically changing the business world as e-commerce offers endless opportunities for entrepreneurs with quick, easy and inexpensive ways to create an online business.

Business Plan | Writing Your Company Business Plan