Bolting on an acquisition could enable the future selling of your company
As you think about ways to accelerate growth and improvement of your company and especially as you think about growing company worth to one day be euphoric upon an exit event, ask yourself if doing an acquisition could make sense for your business.
Acquirer’s often like scale so if they are going to expend the time and resources to do an acquisition, they’d rather it be meaningful to their business in terms of the revenue and profitability they will be adding to their own. For private business owners, it can make great strategic sense to consider conducting their own acquisition to enable the worth building of their company and then be rewarded upon their future exit event for having built the greater scale.
We regularly work with our clients in deploying this strategy and use various strategic thinking templates to facilitate their planning about who to acquire and why. Here is a great template (Acquisition Planning Template) to start your journey of considering this strategy for your business.