Buying a company generally does not require a full business plan but Rather a summary of the acquisition. Below is an outline of an Company Acquisition Proposal which is used in lieu of a full business plan for the narrative portion of the plan. Full sets of financial projections are still required.

 

 

Include a cover page with:

o         Title (Company Acquisition Proposal)

o         The name of the company you are acquiring

o         Your name and contact information.

o         Non-disclosure statement / confidentiality notice.

 

 

1.      Business Name and Location

2.      Number of Partners/Owners and the legal structure of the company.

3.      Opportunity - Information about how you identified your opportunity and why you think there will be demand for your product or service. Will customer education be required?

4.      Current Position - what activities have you done to date to get the business going. Have you invested in equipment, completed test market, or invested in intellectual property (patents, trademarks, etc.).

5.      Mission / Vision - Tell the reader about your vision for the company and the short-term goals you wish to achieve over the next twelve months. 

6.      Products or Services - As a rule of thumb, if you offer more than 10 products or services group your offerings in to categories by price, location, functionality, or some other common trait. (Note: For Product Sales, it is helpful to group products with similar margins or Cost of Goods Sold for future use in the financial projections.) Be sure to identify what will make your business unique by identifying your competitive advantages or the niche you will serve in the marketplace.

1.      Target Market - Identify in quantifiable numbers the size of your Target Market. Supporting documentation should go in the appendix...only list key market data should be written in the plan. Identify any test marketing completed and the results.

2.      Distribution - Determine the appropriate location you are able to serve. The radius or distance from your location that you will serve will be determined by your product or service distribution plan. If your business is virtual or not bounded by location it may be advisable to phase in distribution to certain locations starting with the ones nearest you and based on the resources you have available.

3.      Market Trends - Identify the trends with in the market that are both advantageous to your business and those that present a disadvantage. Showing that you have identified potential roadblocks and laid out a contingency plan will make the lender or investor more comfortable with the risk level of your project.

4.      What is the competitive advantage of your company and product compared to theirs?

 

Describe the opportunity that has been presented and how you intend to finance it.

 

The amount of personal assets and cash that we are contributing to the purchase of Company XYZ is $20,300.   The necessary assets for start-up and purchase of the company are $135,000 of which 125,000 is to purchase the existing business. The additional $10,000 that we are requesting is for working capital that will give us the ability to build and increase the number of product lines. This will then increase the overall income for the business. Therefore we are asking for a loan in the amount of $114,700. We are also requesting a loan term of 10 years.

 

 

Include a Bio or Resume of each owner or Key management.

 

 

1.      Three Years of historical Income Statements and Balance Sheets are attached.

2.      Three Years of Pro-Forma statements of Income, Balance Sheet and Cash Flow.

3.      Itimized List of Assets being Purchased and Copy of the Purchase Agreement.