Buying a company is a demanding, complex process requiring a wide range of skills and abilities. If you understand this process thoroughly, then you are far more likely to make the right purchase decision. Whether you are buying a $5 million plant or a $100 million business, following certain steps will enhance your chances of successfully operating a profitable venture once the deal is closed.
Success or failure? Various studies have found that as high as 60% of all acquisitions fail to meet the acquisition performance goals – ROI, ROE, etc. – that were set at the closing and which significantly influenced the price paid. When making an acquisition, it is imperative that you understand:
A key element of understanding these items is having experienced personnel involved in the process – employees of the company as well as outside consultants.
What JP-MC Can Offer to You
We can systematically take you through the key steps in buying the right company by assisting you in, at least, the following:
Our Successes – Associates of JP-MC
We led the acquisition of 50 operating businesses in various US states, Italy, Germany, England, Canada and Denmark. We also set up joint ventures / licensees in Japan and Italy, as well as operating relationships for suppliers to and from Mexico. Many (20) of the operations acquired were under-performing businesses when acquired. Prior to each closing we developed methods and a plan for turning these businesses into profitable ones. The result of many of these acquisitions, JP Industries, was selected as the 1988 Michigan Corporation of the Year (after two years as a finalist) and was included in the Inc. magazine Fortune 500 listing. 16 businesses around the world in 3 years. We also analyzed many, many more prospects which did not result in completed transactions due to either unreasonable pricing for the transaction, or items found during due diligence which negatively impacted the attractiveness of the acquisition target.
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