Augeo Ventures - fuzje i przejęcia firm. Doradztwo strategiczne.

Buying a Business in Poland

Your path to successful acquisitions in Poland

Are you considering an acquisition of a business in Poland? Would you like to develop your company through an extensive growth strategy? Are you interested in M&A in Poland

Typically, acquisitions take place when:

  • a company is interested in rapid development, which is not possible organically
  • a company intends to develop, enlarge the scale of its business and enter a new market sector, which is easier and more efficient by acquiring another company
  • an investor seeks opportunities for achieving high returns on investment

 

How to choose a takeover target?

Selecting appropriate target companies is a complex process and  requires analyzing a range of different aspects, such as:

  • The possibility of continuing the business after a change of ownership - transfer of relationships with customers, operational management know-how.
  • The organizational structure and its dependence on the current owner
  • Synergy effects with buyer’s business
  • Target valuation

 

How to successfully complete a takeover?

  • Step 1. Identify acquisition targets

Depending on your investment criteria, there can be from only a few to hundreds of potential acquisition targets. The key is to quickly and efficiently identify targets screen them for value to the buyer. This Step ends with drawing up a long list of acquisition targets.

  • Step 2. Verification of owner’s willingness to sell the company

The proposal of a company acquisition is discussed with the owners. For business owners, it is always a difficult decision. In addition, only a few of the business owners at a given time are willing to consider selling their business. It is important that you properly present your company’s value to the owners and underscore the benefits (financial and non-financial) to the owners. This stage ends with a short list of acquisitions.

  • Step 3. Due diligence of the target and negotiations of transaction terms

Prior to negotiations, the acquisition target should be valued. Reliability and accuracy of the information about the company should be verified. For this purpose, various valuation methods are used (most commonly, discounted cash flow method (DCF), comparative method and net asset value method). To achieve the second objective, a due diligence is performed – a comprehensive analysis of the company with focus on operations, financials, legal and tax issues.

 

6 key principles that will help you succeed in acquisition projects

  1. Involvement of the best managers in the team, for whom the transaction is a top priority.
  2. Close cooperation with your technical and analytical team in order to properly evaluate the business and plan for the time after the transaction is closed.
  3. Clearly defined decision-making process based on objective criteria.
  4. Securing debt or other forms of financing in advance.
  5. Flexibility with respect to transaction terms other than price, such as: future role of the selling owners, payment terms.
  6. Building strong  relationships and trust with the target owners.

If you have decided you would like to grow your company through acquisitions, see how we can help you execute Poland M&A projects.

Learn more about acquisitions and ask our consultant about potential transaction opportunities.