The word is "Buy" - but when is best?
Growth through acquisition is the fastest way to scale up unless you're a tech start up with the latest "must-have" solution or experience and the crowds are "breaking down your doors to get in".
But buying can be fraught with difficulties and challenges. You can minimise these headwinds is to take advantage of the following 10 tips over timing your acquisitions:
Your business is doing well and you’re keen to build on momentum - success breeds success
You can benefit from scaling up quickly - some plans can drop into place quickly and easily
Your firm’s reputation can gain you leverage in a deal - people like to deal with solid people
You have people and systems in place to integrate rivals smoothly - a good team is invaluable
You have spare capacity and an add-on has greater operational leverage - something the seller won't be able to price in
You have excess cash burning a hole in your balance sheet - as they say , "cash is king" and it talks loudly
Your company is performing strongly - allows you to devote time and enegry to a purchase
The economic cycle is favourable - it doesn't last forever so strike while the iron is hot
You foresee marketplace or industry changes that make consolidation attractive - perhaps you are ahead of the game with foresight
Industry changes are creating challenges for firms unwilling or unable to change - some sellers will be keen to get out
To find out more about acquiring businesses visit our website which is full of tips for those who have never taken the plunge before.
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Henley Business Brokers are independent specialist business brokers and business transfer agents, working collaboratively with accountants, focused on owner managed companies in the Manufacturing, Engineering, Fabrication, Industrial, Distribution, IT and B2B Service sectors, with turnovers of between £0.5 million and £10 million.