CHAPTER 5
RESEARCHING AND SELECTING A MARKET
In Chapter 3, I introduced what I called the “markets first” approach to searching for acquisition targets. The idea is that before you look for a company to buy, you define the market in which you are going to conduct your search. The reason for first selecting a market is to ensure that there is a healthy, stable demand for your acquisition partner’s products or services. Without that certainty, you have reason to beware of even the most tempting buying opportunity. A sweet-smelling prospect in a no-growth market may well turn out to be a lemon. The fact is that in almost every business situation, growth follows demand.
Researching and selecting the right market to enter marks the final step in the ...
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