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What are the biggest mistakes when buying / acquiring a company?

06/05/2022 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

1. Insufficient due diligence: the company analysis before the purchase is one of the most important elements in the acquisition. Without thorough due diligence, unforeseen risks and liabilities may go undetected.

2. Insufficient insight into financing: In order to execute a successful acquisition, companies must carefully review financing risks. This includes a review of capital requirements, funding sources and use of funds.

3. Unclear understanding of the target company's culture: when a company acquires another, it needs to understand what the company's culture is and how it can be integrated into its own business.

4. Unclear goals: A successful business acquisition requires clear goals and a successful plan to achieve those goals. Without a clear understanding of the goals and the strategy to achieve them, it is difficult to successfully implement the acquisition.

5. Inadequate legal advice: a company should always hire a qualified lawyer to ensure that all legal principles are followed correctly.

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