The Three Most Important Aspects When Searching For A Potential Acquisition

November 18, 2024
by an member from Stevens Institute of Technology - School of Business
These are the three best introductory tips I can give to someone who is searching for potential companies to acquire:
Recurring Revenue: Prioritize companies with steady, predictable income streams from subscriptions or long-term contracts, ensuring consistent cash flow and reduced volatility.
Stable Industry: Focus on industries with reliable demand, minimal cyclicality, and consistent entry and exit opportunities, which will provide long-term growth and a viable exit strategy.
Quality and Value: Seek well-managed companies with strong market positioning, proven profitability, and growth potential, ensuring a balance of financial health and strategic fit.