You have successfully operated your care business for a number of years, carefully nurturing its culture, values and reputation, and are now ready for the next step – the acquisition of a new care business. But what does a successful acquisition look like? Here are some areas to consider.
Is your own house in order?
The process of incorporating a new care business into your existing structure will be simplified a great deal if your current business is well organised. The addition could cause strain across various aspects of your business so it is worth spending time preparing your existing business structures and personnel. Consider which colleagues will be informed and consulted with during the sale process; you may need to rely upon your existing staff to assist as the transaction progresses and during the post-completion integration phase.
Taking on a new business will require time, money and manpower to ensure a smooth transition after you complete your purchase. The better prepared and organised you are, the easier this will be.
What is the target?
The next thing to look at is your target. How are you looking to grow your business? Do you simply want to expand and offer more of the same service you already provide, or are you looking to acquire a different range of services that are complementary to your existing business?
Consider the size of the business you want to acquire and the impact this will have on your own organisation structure post-completion. Does the culture of your target acquisition fit with what you have established within your current business? Finding the right target business which complements and enhances what you already have will be instrumental to ensuring a smooth transition..
Undertaking preliminary due diligence on the proposed target will help to establish whether the acquisition is viable. This could include financial, tax, operational, HR and legal matters to identify any key areas of concern that could impact on the overall prospects of the transaction. Engaging professionals at an early stage can help to minimise your risk of discovering significant issues shortly before completion once significant management time and costs have been incurred.
Whatever your plans and ambitions may be, it is essential that you seek the appropriate advice from your accountants, tax advisors and solicitors who can help determine your overall strategy and put you in contact with specialists in business lending and corporate finance to ensure you are adequately prepared for growth.