The 20 top questions buyers of all types ask in an acquisition process.

How do you measure up as a potential seller?

 

1. What have been your historical gross profits?

2. Assess historical revenue stability and growth prospects.

3. Assess overall market stability within your niche.

4. What is your current footprint within your market(s)?

5. How sustainable have your customers been over the years?

6. What is the level ofcustomer concentration?

7. Assess the number ofcompetitors entering your market

8. What has been your experience with obsolesce?

9. Are your overheads and expenses consistent?

10. What has been your level ofcapital expenditures compared to growth?

11. What is your ability to extinguish bank debt under the buyer's model?

12. What is the impact ofintellectual capital in maintaining customers?

13. Have you sized up the regulatory environment?

14. What are your environmental risks?

15. What has been the pattern with legal issues over the past 5 years?

16. What could be some potential cultural issues?

17. How far down the organization chart does the formal planning process go?

18. Do you have regular board meetings with an agenda?

19. Do you have the right systems in place to measure performance?

20. What are some ofthe technological challenges the company faces?