An acquisition could increase the size and profitability of your business overnight. It may allow you to take advantage of new economies of scale or move into new areas. You may be able to acquire a bigger and better customer base or strengthen your management team. But an acquisition can also bring problems, draining financial and management resources from your original business. You need to understand whether the acquisition will add value to your business, after realistically taking into account all hidden costs. To be successful, it will need to bring a number of benefits to your business. This briefing covers:• The topics for making a business acquisition.• How to use an acquisition to expand your business.• How to use an acquisition to reduce costs and risks.• The pitfalls of acquisition and how to avoid them. Define your goals Deacquisitions are riskier than organic growth. Be clear about what you need and expect an acquisition to do for you, before investigating possible acquisitions. 1.1 What are your strengths? Can you complete them? Can you afford to risk undermining them? • How good are your employees? • How good are your products, your position and your market share? • Do you have financial strength? For example, money in the bank or shares in your company that can be sold. • Do you have advantages in technology or production processes? 1.2 What are your weaknesses and how could you solve them? • Is your market position shaky? Are your finances overloaded? percentage of your income?• Do you have any management weaknesses?1.3 Analyze your opportunities and how you might benefit from them.• Do you have a solid market......middle of the road.... ..• For example, you may not want to ( or not be able) to purchase the company that owns the brand. But you may be able to purchase a company that holds a license to use it. If you offend the trademark owner (for example, by threatening to compete), you may still be denied use of the trademark.B. Your ambitions may be blocked by public policy restrictions. • For example, you may not be able to get planning permission for a retail outlet where you want one. But you may be able to buy a company already operating there. My opinion“Always evaluate whether you have sufficient management resources to identify, negotiate, finance, manage and integrate an acquisition.”Cobalt Corporate Finance“Don't forget the invisible' costs of an acquisition. The time spent researching, researching, evaluating, negotiating and fundraising could be better spent improving and growing the original business.”