Introduction Acquisitions and Joint Ventures
If you want to speed up the expansion of your business, you may decide to use surplus resources or raise further cash to buy an existing business to add to your previous activity.
As well as ensuring that the price is economic and safeguarding yourself against the possibility of undisclosed liabilities, you should consider your financial and management capacity to make the acquisition and run a larger concern.
As an alternative to buying a company or business, a joint venture may be the most satisfactory way of starting a new business or entering a new market. Joint ventures are usually carried on by a limited company jointly owned by the parties, but can also take the form of a partnership or a simple association. Which type to choose depends on how important limited liability is to the venture, how long the venture is expected to continue, the purpose of the venture and the type of business involved.