Acquiring a website for its links
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Hi Alexander,
How are you I hope you are fine. First of all congratulations for your business success. Second yes, I think that this will be the best option. You can find the best practices here http://www.seomoz.org/learn-seo/redirection. I would suggest you also to analyze all the urls of his website and the strongest of them to redirect them also to inner pages of your site that they are optimized for your keywords, and/or to related pages of your site. Because if some of them are getting organic traffic for some keywords and you redirect them to one unrelated page then the bounce will rise. So analyse good before you redirect. One last thing. I would suggest that before you redirect the whole site to put one announcement that the kinkobanners.com was purchased by http://www.allstatebanners.com/ so the visitors knows that the site change owner and to expect that redirection.
My opinion. I hope this was helpful.
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A blanket 301 from all pages of the purchased domain to your domain will work without a problem.
If the previous owners transfer GWMT and GA access of the domain, then it is worthwhile reviewing also search terms (optimize your landing pages and campaigns for them too).
Look at the top landing pages of the purchased domain and the PR of the inbound links. In some cases it will be worthwhile to discredit links based on reputation and in others it is worthwhile to 301 to new landing pages directly.