The Most Common Reasons To Grow Through Acquisition
Jim has done all he can to grow his business organically, however, growth in both sales and profit have come to a screeching halt. He remains confident, based on research, in his market, and he has taken countless steps to reduce costs to improve the bottom line. So, with his goals for growth and increasing business value being greater than what he’s currently realizing, Jim is now wondering if external growth through acquisition makes the most sense.
David Braun, in his book Successful Acquisitions, A Proven Plan for Strategic Growth, suggests that Jim, and any owner considering growth through acquisition, should consider the following “ten most common reasons to acquire”.
Increase top-line revenue.
Expand in a declining market.
Reverse slippage in market share.
Follow your customers.
Leverage technologies.
Consolidate.
Stabilize financials.
Expand your customer base.
Add talent.
Get defensive.
We highly recommend David’s book for anyone considering acquisition as an external growth strategy, and please contact us if we can be of assistance with your organic growth or decision as to which growth path you should choose.