Articles

Businesses grow in one of two ways: organically or by acquisition. Growing organically means that you grow slowly but surely over time as the demand and money allows. When you grow by acquisition, you buy another company and absorb them into your organization. Growing by acquisition can be a great business strategy. Let’s look at a few of the common reasons companies acquire other businesses:

1. Increase market share: Some people decide to buy out their competition in order to harness their power, gain their customers, and create more momentum.
2. Decrease the cost of supplies: We’ve had several people come to us to help them buy a supplier. This helps to diversify their business model and substantially decreases their cost of goods.
3. Expand into new territory: Instead of buying a new building and finding new team members to staff it, you can buy an already running operation that you can just fine tune.
4. Add new technology: You can often buy technology quicker and cheaper than developing it on your own.

If you decide that it is time for your company to grow, we can help you identify potential targets and negotiate the deal. We can even help you develop a plan to incorporate the new employees into your culture and help you avoid any land mines related to the acquisition. Contact us to get started.