Increasing market share and profit through acquisition is an appealing prospect for many business owners and can offer a fast-track opportunity for success.
But before you make your move, it’s important to do your SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis to establish exactly what the purchase would bring to your business.
Until you can understand what the competitor is all about you cannot make a proper approach. Do your background homework and find out what it is that keeps your competitor awake at night, and what they don’t like about their business.
It’s a good idea to tactically position yourself so you can bump into them at trade fairs or dinners so you can have an informal chat and suss them out. Alternatively, try a third party covert approach via a solicitor or accountant.
If you really want to be alternative, try offering them your business for sale to see what reaction you get. If they indicate they have no interest in that business sector moving forward it gives you strong intelligence to begin negotiating to purchase theirs!