7 Strategies to Grow Your Business With Acquisitions.
The first ( and most obvious) acquisition target is all about acquiring a company that more or less ‘does what you do’ The value here is pure Market Share.
- You could buy a direct competitor to you, a company that sells to the same people as you
- Or a firm that offers the same service/products as you, but to a different market
- A company that exports, giving you a much larger footprint
- Maybe a company that has come up with an innovative replacement to the thing you sell.
We can work with you to find and fund these competitor acquisitions and increase market share.
Thinks about all the blogs, LinkedIn groups, Reddits, Facebook groups, Meetup and all of the other social groups that are talking right now, to your perfect customers.
If we bought those groups and folded them into your business structure, they could give you direct ( and usually free) access to thousands of buyers, locally and globally, who buy what you sell.
We find these opportunities can be picked up at a great deal, becuase the originators usually don;t know how to monetize the group. ( Now you know)
You can build a sales team from scratch.
You can organically grow a team of people to run your growing business.
Or, you can buy a ready made team who are already making money from existing clients ( so paying for themselves from day one).
You bolt-on your products/services to the new business, increasing their profit center and your capacity ti increase sales in your core business.
What else is your client buying…and why not have them buy it from you?
Acquiring companies that are already selling to your clients increase client life time value (LTV).
You’ll be able to cross sell to the entire customer database of the acquired company, and them to yours.
You’ll make life easier for the client when you become a one-stop-shop for what they want.
Think about all the companies you write a cheque to, your supply chain.
The profit that they make on each sale from you (and all their other clients) could be yours if you acquire them.
Picking up supply chain companies makes sense because you already understand the basics of their operations from dealing with them regularly.
Intellectual Property, when it is defensible/ undisrubtable makes you much more valuable to an acquirer and a perceived much lower risk when you eventually put your business on the market.
Funding acquisitions is both art and science. Mainly we deal with the art. Financial deal stacking means we package a funding stack from various sources to get the deal done. As you grow, it’s nice to have a business that finance companies will lend against. MRR and ARR simply means monthly recurring revenues and annually recurring revenues.
As we go after bigger and bigger targets, the funders we approach love to see recurring revenues. They get comfort seeing those payments come in one after the other, month on month.
Add MRR to your growth stack
If our approach interests you and you’d like to learn more, book a call to talk to our team:
If you’ve already had a ‘discovery’ call and you’d like to progress the conversation, this ones for you:
If you’re a partner and one of these ideas just sparked something, let’s jump on a call and get going: