DigitalSoldier
Honorary Master
hi guys,
We are thinking about purchasing(or buying a majority share) one of our competitor companies what are the things we need to look out for.
Some background about our company:
We started the company in 2011 and we have had a lot of growth in such a short time. We have managed to sign some huge contracts in that time and also take a few big clients from some of the larger firms we are competing against.
We are busy signing another contract with a local mine. Another company had the business, but only on a call as needed basis. They are also a small company and I am thinking a mom and pop shop. (Will investigate in the coming weeks)
But they do have expertise in the field, the mine where we took their business is satisfied with their work, they have equipment and also other contracts. And probably most important they are a Level 2 BEE company and we are only Level 3.
The reason we are considering buying a majority share in their company:
They have experience already at the mine and also other long standing clients.
They have equipment and experience that I think will be beneficial to us, considering some of the equipment cost in the range of R500,000.00 then we still need to appoint new employees and train them. We also have to get the trust of the people on the new mine.
We are thinking about purchasing(or buying a majority share) one of our competitor companies what are the things we need to look out for.
Some background about our company:
We started the company in 2011 and we have had a lot of growth in such a short time. We have managed to sign some huge contracts in that time and also take a few big clients from some of the larger firms we are competing against.
We are busy signing another contract with a local mine. Another company had the business, but only on a call as needed basis. They are also a small company and I am thinking a mom and pop shop. (Will investigate in the coming weeks)
But they do have expertise in the field, the mine where we took their business is satisfied with their work, they have equipment and also other contracts. And probably most important they are a Level 2 BEE company and we are only Level 3.
The reason we are considering buying a majority share in their company:
They have experience already at the mine and also other long standing clients.
They have equipment and experience that I think will be beneficial to us, considering some of the equipment cost in the range of R500,000.00 then we still need to appoint new employees and train them. We also have to get the trust of the people on the new mine.