Acquiring a Company: Key Questions and Expert Guidance

Expanding your business empire through the acquisition of an existing company can be a strategic move. Whether you aim to eliminate a close competitor or venture into a new industry, it’s crucial to ensure you’re making a wise investment. Thorough research and asking insightful questions are essential to determine the viability and potential of the acquisition. In this article, we will explore five vital questions to ask before proceeding with a purchase and highlight the importance of seeking expert guidance throughout the acquisition process.

Key Questions to Ask Before Making an Offer:

1. Why is the business for sale?

Understanding the reasons behind the sale is crucial. It could indicate underlying issues such as declining sales, increasing debts, internal problems, or an unfavorable market for their products/services. Uncovering the motives will help you avoid acquiring a problematic company.

2. Is this a promising industry?

Conduct thorough research on the industry, competitors, and market in which the target company operates. Ensure that the industry has the potential for sales, growth, stable revenues, and profitability. Examining predictions and forecasts for the industry post-pandemic will provide valuable insights for making an informed decision.

3. Have you performed due diligence?

Thorough due diligence is essential to uncover any financial, legal, or human resources issues that may pose risks. Investigate any unpaid taxes, defaulted loans, ongoing legal cases, and the company’s compliance with regulatory requirements. Understanding the company’s records and history will prevent future complications.

4. Does it have a sound business plan?

Assess the existence and effectiveness of the target company’s business plan. Determine if there is a plan in place and when it was last updated. Evaluate how well the company is progressing towards the milestones outlined in the plan. While you may need to refine the strategy post-acquisition, having a solid foundation is essential.

5. Are the management team and staff capable?

Consider the quality of the management team and staff you will inherit with the acquisition. Assess their skills, experience, and motivation to ensure they align with your goals for the business. Engaged and talented employees will play a vital role in the company’s future success as you steer it towards new horizons.

The Importance of Expert Guidance:

Acquiring a company is a complex process that requires expert guidance to navigate successfully. Even with thorough due diligence, background checks, and strategic planning, challenges may arise. Consulting with professionals experienced in business acquisitions can help you identify the best opportunities and mitigate risks.

How We Can Assist You:

We understand the intricacies involved in purchasing a company. Our team can support you throughout the process, from conducting relevant checks to developing a new business plan and strategy tailored to maximize the potential of your acquisition. Reach out to us to discuss your acquisition plans and benefit from our expertise.

Acquiring a company is a significant business decision that requires careful consideration and expert guidance. By asking the right questions, conducting thorough research, and seeking professional assistance, you can differentiate between favorable opportunities and potential risks. With the right support and a well-defined strategy, your acquisition can lead to business success. Contact us today to explore your acquisition plans and embark on a prosperous journey.


Your Outside Team



Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.

Aside from business consultation, we are business accountants Wellington who offer accountingbookkeeping, payroll services designed to help you achieve greater financial success.

You can click here to speak to a businessaccounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business. 




Wellington Accountants | 

Business Accountants | 

Construction Accountants 

Property Accountants 

Contractor Accountants 

Hospitality Accountants |

Property Developer Accountants | Accountants Wellington | Wellington Accountant | Restaurant Accountants | Cafe Accountants | Business Consultation | Business Advisor

AddressLevel 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand 

Mail: PO Box 24-457, Wellington 6142

Phone04 889 2975

New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Business Accountants: Understanding Changes in Residential Property Taxation

Recent years have seen significant adjustments to the tax landscape, particularly concerning residential property. The government has responded to calls from various quarters to address investor demand in this sector. Notably, recent changes have been initiated to reverse tax policies affecting residential property, aligning with promises made by both National and ACT during their election campaigns.

Read More »
New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Business Accountants: GST on Housing: Avoid Surprise Tax Bills

As we approach May 2024, it’s crucial to address potential GST pitfalls when selling property. Over the past decade, there have been instances where property sellers, unaware of GST implications, faced unexpected tax bills, especially those converting residential properties into holiday rentals or using them for business.

Read More »