How Do I Choose the Best Acquisition Services?

D. Nelson

To choose the best acquisition services, it can be helpful to first determine the services from which you can benefit most. Some organizations that require these services lack the funding to pay for in-house staff to prepare financial documents, perform necessary audits, and make sure that acquisitions are compliant with government agency regulations. Other organizations may have in-house financial analysts and accountants, but would prefer to hire a third party who can perform a business valuation in which the overall worth of a business is determined. In all cases, the best acquisition services tend to be those offered by firms or government agencies that have resources specific to your needs.

Businessman giving a thumbs-up
Businessman giving a thumbs-up

An acquisition describes any act in which one possession is bought by an individual or organization. In the business world, an acquisition occurs when one company purchases another. Both the buying company and the selling company can have need for acquisition services.

When a buying company is considering acquiring another company, a manager or executive might request acquisition services that provide due diligence regarding the real worth of an organization. Due diligence is a legal term that describes a process by which a buyer can learn about all aspects of a company prior to purchasing it. Factors such as debts, contracts, and lawsuits are taken into account when an acquisition professional performs due diligence. If performed effectively, due diligence can help managers of a buying company to develop an accurate financial strategy for how to handle a newly acquired company.

A selling company, on the other hand, might benefit from acquisition services that provide business valuation. This is an act of appraisal in which all of an organization's tangible and intangible assets are taken into account. Factors such as cash flow, business models, customer base, reputation, and suppliers are considered assets that are assigned value by an appraisal specialist.

Value for intangibles, such as reputation and customer loyalty, are often hard for experts to determine. They may need to compose detailed explanations for why certain values were chosen. If performed well, business valuation can provide potential buyers with a persuasive case for the value of a selling company.

When choosing acquisition services, it can be a good idea to choose a firm or organization that has a lot of experience working with businesses similar to your own. Recommendations from colleagues can be great resources. Trade magazines and websites often include profiles of acquisition services providers that can help to lead you in the right direction.

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