Three Characteristics of a Strong Acquisition Target
Not all profitable businesses make good acquisitions.
Experienced buyers often look for three characteristics:
**1. Stable demand**
Businesses that provide essential or repeat services tend to perform more consistently.
Examples include storage facilities, car washes, and service businesses.
**2. Predictable expenses**
Companies with relatively stable operating costs are easier to manage and forecast.
**3. Systems that reduce owner dependency**
The best acquisition targets can operate without the previous owner being involved in every decision.
Businesses heavily dependent on the owner can struggle during ownership transitions.
What industries do you think best fit these characteristics?
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Donald Thomas
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Three Characteristics of a Strong Acquisition Target
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