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Considering acquisition? Review these essential first steps

By: Ted Schuman, PlanetOne Founder & CEO

Being approached by another company who is interested in acquiring yours can be validating and exciting. It’s easy to immediately get swept away at the thought of the potential financial reward. For any company leader, it is essential to follow the appropriate steps when you’re approached with an acquisition opportunity.

Know Your Numbers Inside & Out

It is crucial to know your numbers inside and out. Invest in having your business professionally valued by an expert. Yes, it is an up-front expense, but it helps you frame and set your expectations as to what the market will support.

Surround Yourself with Professional Advisors

Make sure you are surrounded by a team of professional advisors you can trust to help you consider all your options. These individuals can be people within your industry or outside of it, but they must be people you highly respect and go to for major decisions such as this one. Once you have selected a path and you feel ready to entertain an offer, it’s time to lean on your advisors. You can also consider hiring a broker or an investment banker who will manage the process. You certainly will need a very strong tax attorney, CPA and an attorney who specializes in M&A.

The Paperwork

It is very important that the purchase price, terms and conditions, holdbacks, cash at closing, tax considerations, capital gains and other elements be contained in your company’s letter of intent. Your team of experts will be able to filter through the numerous items in the transaction to ensure you maximize your ROI for the years of hard work and commitment in your business.

What to Think About in Advance

Be sure to think about how you want to be involved after the sale. Do you stay on for a period of time or become part of the executive leadership team in the new organization?

In closing, remember everyone is motivated for different reasons based on age, accumulated wealth, lifestyle, market conditions, and the economy. If for any reason the sale of a portion, or your entire company, does not work for you and there is no real driver, take the pause. Wait until the vibe is right and the value presents itself to where you can check all the boxes and be rewarded for the years of hard work and commitment you – and most likely those closest to you – have made to make your company a successful business worth selling, and even more important, worth buying.


About PlanetOne

PlanetOne is the IT channel and telecom industry’s preferred business partner for identifying and delivering cloud-based and connectivity solutions to small and midsize businesses and enterprises. To learn more, visit

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