It’s common for investors and business owners to seek new companies to acquire. Sometimes they do it for strategic reasons – bringing a key supplier in-house or adding to existing production capacity by buying a company with similar capabilities. Other times they do it because they are business builders and want to expand their reach or take on new challenges. Or, in the case of an investor, they may simply have capital on hand and are looking for productive ways to invest it.One might think that experienced business owners would know how to avoid common mistakes when looking to acquire a business. However, M&A is very nuanced and complicated before, during, and after a deal closes. Businessowners often trust their instincts so much that sometimes they don’t stop to ask the right questions, challenge their own assumptions, or make sure they have protected themselves against things that can go wrong. We’ve all made mistakes. But for buyers of companies, such mistakes can be costly and hard to extricate themselves from. When we consult with clients interested in acquiring a business, there are five mistakes we help them avoid:

1. Overpaying for the acquisition
2. Limiting due diligence
3. Failing to pay attention to "lightning rod" issues
4. Not securing the leadership of the company
5. Biting off too much, too quickly.