What an acquisition market study must check
Unlike a start-up, an acquisition market study starts from an existing activity. The analysis therefore focuses on the strength of what is being bought:
- Customer structure: does one client represent a dangerous share of revenue? Are contracts transferable to the acquirer?
- Dependence on the seller: is the customer base attached to the owner personally rather than to the business?
- Sector dynamics: growth, maturity or decline in the relevant territory.
- Local competition and regulatory change that could affect the acquired activity.