It’s a fact that the quickest way to grow a business is to buy an existing business.
I wonder how many of you have actually had this conversation with your clients.
You may be surprised to learn how many successful SMEs are happy in their little world generating “nice” profits without the owners giving any thought to purchasing another business – they are too focused on themselves.
Organic growth can take years and the fruits of your labour may be disproportionately less than your input, but when you buy somebody else’s business you can double or treble your turnover and give your market share a real boost in a very short time.
Each industry is different and in some disciplines it makes more commercial sense to invest in a specialist advice form growth experts, but in many cases nothing beats the ultimate investment – buying turnover market share and profits from somebody who has done it all for you.
Purchasing a business carries with it challenges but deals can be leveraged to minimise risk if the broker is skilled enough to negotiate it and the seller is motivated enough to sell on the terms you want.
A quality business will pay for itself..... literally.
You can use the profits generated to fund a significant part of your purchase when you defer a portion of the purchase prices into an earn-out arrangement.
So where does the accountant it into all of this?
You need to have the conversation with your clients – maybe on a one to one basis or perhaps by having a “round the table” session, online or in person, with a selected cohort for an online event with a broker present.
By opening their eyes to possibilities outside their comfort zone, perhaps even creating a tempting challenge for them, you’re giving the business advice that really casts you as a trusted business adviser.