Unlocking New Avenues of Growth Through Business Acquisitions
Unlocking New Avenues of Growth Through Business Acquisitions
In the world of business + growth, sometimes you need more than just a solid marketing plan and a strong coffee to grow your empire.
This is where acquisitions come into play—a bit like finding a ready-made veggie patch instead of planting all your seeds from scratch. Acquisitions offer a fast lane to expansion, allowing you to tap into new markets, extend your reach, and bolster your competitive edge without breaking a sweat.
Why Consider Acquisitions as a Growth Strategy?
Easy. This approach can not only save you time, but also help you sidestep some of the usual risks of entering uncharted territory.
Picture this: instead of building a new customer base from scratch or testing, developing and launching a new product line, you simply buy a business that’s already got what you need.
Here’s 6 ways acquisitions can supercharge your business growth:
Expand Your Client Base: By acquiring a company, you instantly inherit its customer base. That’s like doubling your database overnight—more people to reach and more opportunities for cross-selling and upselling.
Add New Services and Products: Acquisitions let you diversify your offerings - fast, and provides opportunities for cross-marketing new products into your existing database.
Enter New Markets: Why fight your way into a new market when you can just walk through the side door? Acquiring a company with a strong foothold in a different region or industry gets you positioned in the market without the usual hussle needed to find your place.
Achieve Economies of Scale: Combining resources can lead to cost savings and efficiency gains, making your operations smoother and well positioned for growth.
Enhance Competitive Edge: Acquisitions can bring in cutting-edge tech, industry expertise, or unique intellectual property that can propel you to the front of the pack.
Increase Business Valuation: With your business now bolstered by the acquired company’s assets and profits, your valuation (“your multiple”) can shift to the upside overnight.
Are You Ready to Take the Leap?
Before you dive headfirst into the world of acquisitions, take a moment to check your bearings.
Make sure the target company aligns with your strategic goals and that you’re ready to tackle the challenges of integration.
Before you begin searching for businesses for sale - make sure you can answer this key question:
Does 1 + 1 = 3 ? In other words, does this acquisition align with our business goals in a way that positively impacts our multiple?
When you are acquiring for growth, you’re not buying to get a business - you’re buying to get better performance out of the two businesses together.
Acquisitions work so well in the context of growth because the business you’ve bought on board plus the business you have already together can have greater value than the sum of either independently (1 + 1 = 3).
And remember… it’s not just about finding a good deal; it’s about finding the right deal.
P.s. If you’re not sure about what a ‘multiple’ is.. great news - our Business Sales & Acquisitions Jargon Buster is the best place to start! It covers everything from multiples to EBITDA and Due Diligence - Get it [FREE] here.
If you’re considering an acquisition, be sure to register here for upcoming events, tips and traps to watch out for - Business Buyers Insights.
Tags: buying business owner small business tips
About the author
Joanna Oakey
Lawyer and Managing Partner, Aspect Legal
Joanna Oakey is a commercial lawyer and deal maker with a passion for business, who has worked with hundreds of businesses during her 2 decades in the ...
