Business Acquisitions: Information Gathering
Business Acquisitions: Information Gathering
Once a potential target has been identified, the next step is to gather the right information. Collecting both quantitative and qualitative data is essential to evaluate the target, prepare an indicative valuation, and build a solid business case.
Information can be obtained in writing, orally during management meetings, or via an information memorandum if the seller has engaged advisors and initiated a structured sales process.
Below are examples of the types of questions and data points that are often relevant — though it is important to tailor them to the specific target and industry.
Financial information
- Historical financial statements (last 2–5 years): income statement, balance sheet, cash flow
- Details on extraordinary or non-recurring items
- Future investment needs
- Forecasts and budgets: revenue, expenses, and cash flow projections
- Key figures: revenue and profitability split by business line, brand, or geography
- Relevant KPIs for the company and industry
Operational information
- Business model and revenue streams – How the company generates revenue; main revenue sources
- Customers and suppliers – Largest customers and their share of turnover; customer geography; key suppliers and contract terms
- Competition – Main competitors and relative market share
- Products and services – Current offerings, pipeline, and R&D
- Production and distribution – Facilities, capacity, efficiency, distribution channels, and equipment status
- Future investments – Maintenance requirements and planned capital expenditures
Strategic information
- Market position and competitive dynamics
- Market trends and growth opportunities
- Long-term strategic objectives and expansion plans
- Sustainability initiatives, environmental compliance, and ESG performance
Legal information
- Company and ownership structure
- Key agreements and contractual commitments
- Intellectual property rights (patents, trademarks, copyrights)
- Ongoing or potential disputes and litigation
- Regulatory and compliance risks
HR and culture
- Employee structure, roles, and key personnel
- Competence levels and critical skill needs
- Organizational culture, work environment, and employee engagement
- Staff turnover and retention challenges
IT and technology
- Current IT infrastructure and systems
- Planned or ongoing IT investments
- Cybersecurity, maintenance, and support practices
Why this matters
Systematically collecting and analyzing this information provides a clear picture of the target’s financial, operational, and strategic position. It supports accurate valuation, highlights potential risks, and helps assess growth and profitability prospects. The depth of information varies depending on the target’s size, industry, and willingness to share sensitive details early in the process.
At FLB Partners, we support clients throughout the entire acquisition journey — from strategy and information gathering to negotiation and integration. Contact us today to learn how we can help your company evaluate and execute successful acquisitions.
