Briefly discuss the seven steps in acquiring a business

What will be an ideal response?

1. Analyze your skills, abilities, and interests to determine what kind(s) of businesses you should consider. Think about what you expect to get out of a business, what size company you want to buy, what location you prefer, etc.
2. Develop a list of criteria to provide specific parameters against which you can evaluate potential acquisition candidates.
3. Prepare a list of potential candidates. Search not only the obvious sources, but also the hidden market of companies that may be for sale but are not advertised as such. This might include business brokers, bankers, accountants, industry contacts, networking, trade associations, etc.
4. Investigate and evaluate potential companies and work through the due diligence process. Consider the strengths and weaknesses of the candidates, their profitability, customer base, physical condition, competition, etc.
5. Explore financing options. Consider approaching the seller for financial assistance. Also, consider traditional sources.
6. Negotiate a reasonable deal with the owner and establish the terms of the deal.
7. Ensure a smooth transition. Communicate openly with employees. Consider asking the seller to serve as a consultant until the transition is complete.