Business Takeover Forecasting
Business takeover or buy-up is one of the important activities for an organization’s plan for expansion. However, it is always a risk in acquiring another company for expansion. The process also requires us to go through a thorough check on the health and potential of such takeover!
For such a case, Qi Men Dun Jia (QM) Forecasting can help in analyzing the following:
– Can this takeover generate the profit in line with our expectation?
– What areas that we need to check in detail to avoid potential issue(s)?
– Who can help us to ensure the deal is done smoothly?
– When is the best time to take over or to offer?
– In which way that we should organize the company after takeover successfully?
– Where are the possible locations that we should expand our business?
the list will go on….
Below is one of such cases that my client asked:
Question: My client asked “there is one electronic security systems manufacturer that has just announced in closing down the company. The main reason given is due to the illness and old age of the owner. What do you think our prospect of buying up his company and will his existing product lines help us to generate more profit?
The Day Stem Yi 乙 in the SE palace is the asker while the Hour Stem Xin 辛 in the NW palace is the business takeover of interest. Looking into the parameters in the Hour Stem’s palace in the NW, it consists of DHarm 傷 door, SPillar 柱 star and USnake 蛇 deity, all these parameters do not show a positive business takeover. In addition, DLife 生 door in the W palace, that represents the profit of the takeover, is in the Void situation. This means the profit is unlikely to materialize easily. Couple with the Stem Wu 戊 in the South palace that represents the capital investment, counters the DLife 生 door, which also means the return of investment is not favourable in taking over the business.
Based on the above analysis, the asker is advised not to takeover this business for his expansion plan.
This example shows how the QM Forecasting quickly identifies the problematic business which is not suitable for taking over. The technique can be used as a complimentary tool for the entrepreneurs or business owners for deciding any business takeover or related deal. This technique greatly helps them to decide more effectively and efficiently. If you are not sure whether you can takeover or invest into another business for expansion or growth, please contact me for a quick 30-minutes session.
Stay tuned for more QM forecasting examples.