One thing that surprised me in the chapter was that the author stated that a question that should be asked when acquiring a company is "Will the previous owner be competing in the same industry?" I didn't think that people would sell a business in a certain industry and buy another one in the same exact market. It doesn't quite make sense to me.
One thing that confused me in the chapter is when the author said that one reason for acquisition is reducing fixed costs by acquiring a firm that will permit elimination of duplicate fixed costs. I 'm not really sure what that means.
One question I would ask the author is "What is the first thing that an interested buyer should look for in a company when thinking about acquiring it?" I'm just curious what the most important aspect I should be looking for when looking into buying a company.
Another question I would ask the author is "Would it be more ideal as a buyer to begin negotiating with a reasonable price or low ball the person?" I'm just curious if owner's would view a low ball price as an insult or view you as more of a business man.
On thing that I did not agree with the author about was that buyers are willing to pay more than the evaluated price for a company to avoid start up costs. I'm not so sure that this is true. I feel like people enjoy developing their own business from scratch and the pleasure that they receive from being successful. I feel that the only people who would buy a company for a higher price would be the top 1%.
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