Each of these forms has advantages and disadvantages. A detailed discussion of those attributes is beyond the scope of this article, but each should be considered as a possible alternative in the acquisitions process. Understand Resource Limitations Purchasers must recognize the financial limitations under which they are operating. The extent of finances available for acquisition and operation will be very important and a question that will need to be answered early in the process. There is no need to spend time looking at a business that is completely out of the purchaser's price range, or to stretch the budget so far in the acquisition phase that there are insufficient funds available for operations.
Some fiscal restraint can go a long way in avoiding wasted time and resources.
Every business has a core of assets essential to its successful operation. The key element may be a unique concept, a trademark, a marketing plan, a patent, a certain location, a group of employees or combination of tangible assets. This may involve negotiation with third parties, as well as the seller or its employees. There are a number of ways to structure the purchase of a business. It could be as simple as buying several strategic assets or just enough voting stock to give the purchaser a controlling interest in an existing company.