02 Mar Why Buy?
You’re leaving 50% of growth on the table if you’re not proactively open to buying another company to accelerate growth. If you’re thinking this could be the right move for your business, we recommend looking at firms half your size. This is what we call “the sweet spot.” There are exceptions to this as some firms can take on higher debt or handle a higher profit company, but there are risks. Mike shares his thoughts on buying firms half your size, the same size and larger throughout this episode.
Key things to look at when looking at another firm to buy
- Strategic Fit
- Cultural fit
- Financial fit (after the cultural fit and strategic fit seem to be aligned)
Why buy now? There’s no time like the present. As you grow your business there are many unknowns for the future. What will the economy be like? Have we hit a market cliff? Will I be able to take on that much risk down the road? Acquiring the right firm will take your business places you couldn’t get to on your own where 1 + 1 = 3. Build your brand quickly, expand your reach, and grow “into” a market are just a few of the many reasons why acquiring could be the right move for your firm.
Who to buy:
- A firm that looks like yours
- A firm that helps you specialize in a vertical market
- A firm that expands your firm in other areas
- Adjacent markets that align with your vertical market
- Complimentary
We believe the fastest path to growth is through acquisitions. Don’t go at it alone – Revenue Rocket has been helping firms for 20 years buy and sell their firms. Contact us.
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