When you take over a company, you are inheriting its products and client base. But this means adapting your concept to match them.
| Advantages | Disadvantages | |
|---|---|---|
| Economic risk | Risk is lower and easier to calculate than in the case of setting up a company | Risks cannot be detected immediately |
| Products | Already established on the market | Products do not match your concept |
| Clients | Existing client base | Existing clients are very attached to the old company |
| Employees/Suppliers | Already existing | Supplies and employees do not match your concept |
| Organization | Structures have proved themselves, procedures have been broken-in, which very much facilitates the initial phase | Procedures are associated with one person: when they leave, nothing works any more |
| Level of reputation | The company and products are well-known to and appreciated by customers, established in their memory and have already acquired a reputation | The level of reputation is not as high as envisaged Negative image |
| Capital requirements | In the event of a takeover, the financial burden is less significant, unless new buildings or replacement or modernization investments are necessary | The need for replacement or modernization investments is not detected immediately and can disrupt the financial plan in its initial phase The company's customer database and “good image” come at a price |
| Predecessor | Possibility of transfer of know-how and of knowledge by the predecessor | The mark made by the predecessor may be the root of problems with acceptance (by employees) |
Last modification 21.02.2020
