You have put in an offer, the price is broadly agreed however now the real work starts.
The acquire phase — everything between agreeing a price and taking ownership is often treated as a formality. In practice it is anything but! I’ve been in the phase with clients, and I am reminded, as I always am at this stage, that this is the point where value is either locked in or quietly lost.
The questions that matter now
What are we actually buying? How much of the EBITDA is genuinely repeatable? Revenue that looks consistent on a three-year view can conceal significant variability in underlying contracts.
Does the operational reality match the numbers? The pressure points that affect performance rarely show up in headline figures. Understanding them requires time in the business.
Who are the value creators and what happens if they leave? Key person risk is one of the most consistent sources of valuation adjustment. This is not a post-completion conversation.
What is hiding beneath the surface? Working capital gaps, liabilities not immediately visible, customer concentration that looks acceptable in aggregate but is fragile at the individual account level.
How will this actually integrate? The communication plan for customers and staff, the reporting structure, the first thirty days — all needs to be thought through while you still have access to ask questions.
The capacity question
The acquire phase is intense. It requires focus and the right people to challenge assumptions while the existing business keeps running. This is one of the practical reasons Factr Acquisition & CFO Advisory support can add real value in a transaction. We can bring an experienced voice asking uncomfortable financial questions before it is too late to act on the answers.
To bring in additional expertise and a track record of deal experience, I’ve teamed up with Geoff Kwateng who has operated in the sell-side space and brings great deal insights.