BDC Outlines Steps for Business Acquisitions

The Business Development Bank of Canada (BDC) has published a guide outlining the key steps involved in acquiring another business. The guide, titled "Quelles sont les étapes à suivre pour acheter une entreprise?" (What are the steps to follow to buy a business?), breaks down the complex process into four main phases, from preparation to integration.

According to BDC, acquisitions can accelerate business growth by increasing profitability, market share, and opening new markets. The increasing number of businesses available for sale as baby boomers retire further enhances acquisition opportunities. Acquisitions are often pursued to gain skilled employees, access technology, and acquire intellectual property.

The guide stresses the importance of a clear acquisition plan. "A clear acquisition plan will help you communicate your objectives to stakeholders and avoid spending time on purchase opportunities that aren't a good fit," stated Brett Weese, Senior Director, Growth Capital and Business Transfer at BDC.

The preparation phase includes a thorough assessment of the existing business and assembling a dedicated acquisition team. This team should consist of legal and financial advisors, and potentially other specialists. Clearly defining objectives is also crucial for identifying suitable acquisition targets that align with the company's strategic vision. The plan should detail timelines, budgets, team roles, and identified risks.