An idea and a fairly precise plan are the most important prerequisites for a start-up. You don't even have to start a new company: The corporate succession it is a serious alternative to founding a new company. There are many good reasons to start your own business with a company acquisition start.
Here you will find all the information on business succession as a practical step-by-step guide.
Naturally, anyone who wants to continue an existing business as a successor must meet the same requirements as someone who is starting a new business: a business plan is mandatory, in the case of a successor is called continuation plan.
Entrepreneurial planning is that of a start-up etc.similarbut there are some essential points differences and peculiarities. Because the continuation plan is about describing the business idea over the course of the continuation.
In our specialist article you will find all information about the continuation plan as a practical overview.
The continuation plan builds on the business already underway, existing prospect, existing suppliers and employees. The market, the competitive situation and the target group for the existing and future business areas should be described in detail, as well as the existing internal organization and the planned changes.
You need to describe the REAL situation as precisely as possible so that you can define the TARGET status of the company after your acquisition.
How to find an entrepreneur willing to transfer his business? There are so-called successor exchangeswe have collected the most important ones for you.
Specific information in the follow-up plan
Also on the part number you have to use a lot of care. In the case of a business continuity plan, more detailed facts and figures are usually involved, as very clear information can be gleaned from ongoing business operations. Must be specified:
- a deadline for the transfer of the company
- The purchase price
- the legal form in which the business will continue after the takeover
- a contingency plan for management in the event of absence at short notice (illness, accident).
points like Capital requirements planning, liquidity planning AND risk planning they are just as needed here as they are with a business plan.
Remember to make as accurate an estimate as possible when planning your finances, within which the acquisition costs of the assets in progress will be depreciated.
business model and products
In your business continuity plan, you should describe exactly what you plan to do with the business after the acquisition. To do this, you first analyze the existing business model and the products and services it offers. Then write down what should stay and what should be changed.
- What products/services already exist? vs. What products/services should there be after the acquisition?
- Which target groups are already served? vs. Which target groups will be added after the takeover?
- Will the prices of the products/services change after the acquisition?
- What contracts with suppliers exist? Do they need to be adjusted?
Market and competitive situation
With market and competitor analysis, you not only see what you can do better than your competitors, but you also see what has been going well in your company so far and where there is potential for improvement. From these insights you develop your concept for the orientation of your company after the takeover.
- Will the market volume change after the acquisition?
- Will the sales area change after the acquisition?
- What competitors are there already?
- Will there be new competitors after the takeover?
- Is the marketing strategy changing?
personnel, equipment and premises
A look at the inner workings of your company to be taken over is decisive for the continuation plan. Get an accurate picture of your premises, location and staffing structure so you can make an informed assessment of future developments.
- What is the state of the premises? Do you need renovation?
- How long and under what conditions do lease or lease agreements last? Should it be renegotiated?
- Are the premises and location sufficient for the future direction of the company?
- What equipment (machines, devices) is available and under what conditions?
- Are repairs needed?
- Do the devices need to be replaced?
- Is the equipment sufficient for the management of the company after the acquisition?
- How many employees does the company have?
- How many employees should it have after the acquisition?
A carefully crafted continuation plan requires intensive research and a sober, critical examination of the results. It not only helps convince potential lenders, but also details what to expect if you decide on a business succession.
Writing the business plan is easier and faster with helpful software that walks you through the individual steps. We have tested the best business plan tools for you: To the TOP 5 business plan tools »