How do I budget for an acquisition?

How do I budget for an acquisition?

Budgeting for an acquisition involves assessing the target company's value, estimating costs, and planning for integration.

What factors should I consider when estimating the costs?

Consider due diligence costs, legal fees, financing costs, and potential operational changes post-acquisition.

How can I determine the target company's value?

You can use methods like discounted cash flow analysis, comparable company analysis, or precedent transactions.

What are some common mistakes to avoid in this process?

Common mistakes include underestimating costs, neglecting cultural fit, and failing to plan for integration.