Acquisition may be a fast track to business growth, but it can also be the highway to ruin. Following consultant Harrison Spence's seven easy steps could save you a lot of money and anguish.
1. Buy the assets, not the liabilities Most IFAs will want you to buy their company so they can get entrepreneur's relief and pay just 10% tax. That can mean buying the liabilities. Yes, buy the limited company, but make sure the contract excludes liability. 2. Ensure you have the capacity and discipline to do due diligence Even the biggest companies make mistakes. It is not our place to point the finger or gloat, but there are many well documented recent stories of household brands making costly errors of judgment when on the acquisition trail. We can all let strategi...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
