While it’s true that acquiring a business is different for everyone and every situation, there are a few steps that most everyone goes through (no matter how big or small the company being acquired is).
First: A business is identified that someone wants to acquire.
Now to be fair, many people never get past this stage because the business they want to acquire is not actually for sale or the acquiring business doesn’t have the knowledge on how to go about buying it. This step weeds out those that aren’t really dedicated to going through with an acquisition.
Next: Negotiations go back and forth to reach a mutual agreement on the sale.
This can take quite a while to do, especially with more complicated businesses. It’s important in this phase to fact-check and does your own research into the business you’re interested in acquiring.
Last: Financing is chosen, and the deal is closed.
Different financing options will require a range of income proof, collateral, and required business credit in order to be approved. Once the funding option is picked, the business can start to actually complete the acquisition and bring the second business into the company.
Even though the steps above were extremely simplified, you can see how the process might look of acquiring a business. As mentioned, each of these steps will change depending on the businesses and individual situations involved. Do your due diligence and acquiring your first company will be a great start to many more acquisitions down the road!