Buying or acquiring a business is a big deal. However, maintaining the business and keeping it viable is the tough part.
According to the Harvard Business Review, almost 70-90% of mergers and acquisitions deals don’t make it through.
But if you’re looking for some important tips and tricks, that will help you grow the business after buying it, this think piece will help you!
1. Check the finances
The first thing you must do after buying a business is to check the financial situation. No matter how strong it is in other sectors, the finances must be in place.
This includes frequent financial audits and updated reports. Keep an accurate record of every bit of the company money being spent, because that will tell you where to invest more money and where not to.
Analysing and tracking your money flow is also a good idea, that will help you determine any potential opportunities to grow the company.
While it’s good to invest a bit of money beyond, strictly business purposes, you should prioritise cost-saving ventures like bulk discounts and savings.
2. Create a plan of action
Next up, a plan of action is a must. A plan of action will tell you, the exact areas where your post-acquisition company is doing well and where you’ll have to make significant improvements.
For example, let’s assume the distribution and supply chain network is, not strong. This might be a big snag in the entire management system.
To overcome this, consider seeking distributors for sale in Australia from a popular business listing marketplace. Choose a platform that lets you explore all the top on-sale businesses based on different localities, along with a way to know their asking price, revenue, and profit. This will help you find the best distributor business for acquisition faster than other options.
After you take over the company, use this time wisely to sit with your fellow board members or leadership and chalk out a comprehensive action plan that everyone will follow.
3. Reduce the risks
Risk will always be a part of the business game. However, how you mitigate those risks is what matters.
Even if you can’t foresee every single problem that might hit the company after your acquisition, it helps to plan out the possible weaknesses and threats.
Check the current internal and external threats to the company using the guidance of the business insurance provider.
Some major threats that can disrupt even the biggest companies are, data breaches, unlawful product designs, and theft.
Small and small-to-medium-sized businesses should primarily focus, on getting proper insurance that will help, them recover from any potential lawsuits or legal complications.
4. Streamline the operations
One major way you can grow the company after buying it is to streamline, the operations processes. This isn’t limited to the operations management of the products and services you sell but also regarding the internal business procedures.
For example, if there’s a way to automate the filing and paperwork system in the office, try implementing it.
Encourage communication between different cross-functional teams, especially if you have taken in new hires after the acquisition.
Remember, technology can be a big boon to any company, no matter how big or small. Use AI to simplify your daily schedule or big data to improve the customer interface and experience.
5. Focus on customer experience
Remember, your customers will pay closer attention to your company now that you have bought it. If you’re not focusing on providing the best customer experience, it’s time you do so.
Even, a single customer’s perception can make or break your credibility and image, so you must try your best to give them the best products at the best prices and within the shortest time.
Even if there’s something wrong with the product or delivery, have a dedicated customer service team resolve the issue as soon as possible.
Conduct frequent polls and Q&A sessions on social media platforms on your company website to understand customer perceptions. This will help you grow the company.
Conclusion
While these are some of the most important tips, to keep in mind after buying a company, the most important tip is to be flexible.
As an owner, you need to be constantly aware, of the market dynamics and how they keep changing. If you’re flexible and willing to adapt to change, then your company will grow to great heights!
