Will 2 and 2 really make 5?

You want to buy a business - You can't afford to make the wrong choice

Buying a business can be an emotional experience. The stakes are high. The prospects are enticing and the promise can seem unlimited. But it's important not to get too drawn in. You need a clear head, in-depth knowledge of the business sector, a realistic appreciation of your own circumstances and those of your target. You need most of all a 'second pair of eyes' - a trusted professional adviser, who can bring objectivity to what can become a very personal challenge.

Context will dictate the best way to approach the acquisition.

You may already be 'on the inside' as an individual manager or, perhaps more likely, as one of a management team. You will therefore be looking at either Management Buy-in or Management Buy-out.

You may be an outsider wanting to buy a business 'from scratch'. Again, the situation should shape your approach. If the acquisition is part of the pursuit of expansion, it's worth asking whether this is the most appropriate strategy. It may well be, but there are always issues of 'best fit' with the business you are buying. Can it be integrated smoothly and cost-effectively into an existing operation? Will two and two really make five? Or could they add up to three if, for example, customers defect after a change of management?

These are high stakes to play for. Get the decks stacked in your favour.

And then there's the money. Where will it come from? What are the most cost and balance sheet-efficient options? Who is prepared to invest or lend? And from whom are you happy to borrow or bring into the team as a fellow shareholder? With so many options it will pay major dividends to make the right decision up front. And Fanshawe Lofts can help, quickly, so that the deal won't get away, but not so fast that the issues aren't identified and fully explored.

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