Buyer’s Guide

Before searching for a business, take time to define what you are looking for. Consider your financial capacity, industry experience, geographic preferences, desired level of involvement, and long-term ownership goals. Clear acquisition criteria can help focus your search on businesses that align with what you are trying to accomplish.

Start by researching businesses that align with your acquisition criteria and financial capacity. Consider the industry, location, size, operating model, asking price, and other factors that may affect whether an opportunity warrants further evaluation.

Cooperhawk works with buyers evaluating businesses across a range of industries and markets.

Understanding a business’s financial performance is an important part of evaluating an acquisition. Historical revenue and earnings, cash flow, expenses, assets and liabilities, working capital needs, capital expenditures, and the sustainability of earnings may all be relevant.

Buyers should also consider the quality and consistency of the financial information provided and work with their CPA, lender, and other financial advisors as appropriate.

Every industry has its own market dynamics, competitive environment, risks, regulations, and operating requirements. Consider how industry conditions may affect the business today and in the future, as well as whether the business aligns with your experience, capabilities, and ownership goals.

Due diligence gives buyers an opportunity to examine the financial, operational, legal, and other information relevant to an acquisition. The process can help identify questions, risks, and issues that should be understood before moving forward.

Cooperhawk helps coordinate the due diligence process while buyers work with their attorneys, accountants, lenders, and other professional advisors as appropriate.

A company’s reputation and key relationships can be important considerations when evaluating an acquisition. Customer relationships, online reviews, vendor relationships, competitive position, customer concentration, and recurring or repeat business may provide useful insight into the strength and stability of the company.

Buyers should also consider how dependent those relationships are on the current owner and whether they are likely to continue following a transition.

A successful ownership transition involves more than transferring the business at closing. Depending on the company, buyers may need to consider seller involvement after closing, employee continuity, customer and vendor relationships, licenses, leases, contracts, and other operational matters.

Discussing transition expectations during the acquisition process can help both parties understand their responsibilities and prepare for the change in ownership.

Evaluating a purchase price involves more than comparing the asking price with historical earnings. Buyers may need to consider cash flow, assets and liabilities, working capital, capital expenditures, financing, deal structure, and their own investment objectives.

Valuation information can provide useful context, but buyers should conduct their own evaluation and work with qualified financial, tax, legal, and other advisors as appropriate.

The terms of a business acquisition extend beyond purchase price. Financing, working capital, seller involvement, contingencies, timing, included assets, and other considerations can materially affect a transaction.

Cooperhawk helps facilitate communication and negotiations so the parties can evaluate the terms of a potential transaction and work toward an agreement.

Once the parties have agreed on the transaction terms and applicable contingencies have been addressed, the process moves toward closing. Attorneys, lenders, accountants, escrow or closing professionals, and other advisors may be involved depending on the transaction.

Cooperhawk helps coordinate communication among the parties and their advisors so outstanding items can be addressed and the transaction can move toward closing.

Closing marks the beginning of a new phase for the buyer. Early priorities may include communicating with employees, customers, and vendors; maintaining continuity in key relationships; learning the company’s operations; and implementing changes thoughtfully.

The transition plan established before closing can provide an important foundation for the buyer’s first months of ownership.