A business is going to be more valuable to you as a buyer when the synergies, economies of scale and other integration benefits can be achieved. You can determine which ones are in the right condition to acquire when you look at the following characteristics:  

 

High Potential for Growth – A buyer is going to look for a business that has a high historical or potential growth – companies with new products and services and in a new market.  

 

Specialty or New Products – The business that you’re targeting has a product or service that is new to the market or has a significant advantage over the competition.  

 

High Margins and Low Overhead – Any buyer will look for high gross profit margins and above average profitability in a target business. In addition, they should have overhead and fixed expenses that can be decreased significantly or eliminated all together.  

 

Undeveloped or Large Market – Make sure that you always look for businesses that are situated in a large or new and undeveloped market.  

 

Quality Employees – Those buyers will look for businesses with low employee turnover and strong management.