Looking To Grow Your Business Through Acquisition
How Do You Make Sure Your Not Buying A Pup
If your are looking to grow your business then growth through acquisition can be the fastest and most effective way.
Beware only 50% of acquisitions are successful so how can you improve your chances of success.
In this article we will consider
- Seven questions you need to ask pre acquisition
- Eight acquisition strategies
- Three acquisition numbers to consider

Seven Questions To Ask Pre Acquisition
- Why do I really want it – vanity / sanity
- Have I done my sums – overall it will inevitably cost significantly more than expected
- Does it make financial sense
- Can I live with the outcomes – 50% are unsuccessful
- Do I have a plan – Many businesses don’t have a clear strategic plan for their core business let alone an acquisition
- How will it fit in – see point 6
- How long will it take – Guess what it will take longer than expected (and consume a lot of time)
Growth Acquisition Strategies
- Acquisition will allow the existing business to improve its performance
- Acquisition will consolidate the industry and remove capacity
- Acquisition will accelerate market access
- Acquisition will allow you to acquire skills or technology (as opposed to doing your own development)
- Acquisition will allow you to pick a winner early
- Roll up – buy lots of little businesses to achieve a consolidation. Difficult as it becomes obvious what your doing so prices start to increase
- Consolidate to improve behavior – need to get senior players on board
- Transformational merger
3 numbers to consider
- Your maximum price
- What the vendor will accept (you need to know their circumstances health, family, debt etc)
- What values are really being achieved
Looking to grow your business through acquisition
Remember 50% success on acquisitions could you achieve growth organically, have you got clear strategies in place to maximise organic growth. For more information on business development click here
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