Many entrepreneurs rely on organic growth to increase their sales.
Here are 10 good reasons why you should consider an acquisition…
- COVID was a contributing factor, many entrepreneurs finally decided it was time – there’s more choice for buyers!
- Having a larger company afterwards allows you to bid on a wider variety of contracts.
- Many companies are at a crossroads… should we invest in technology? Should the business model be adapted? An acquirer is often the solution “to take the company to another level”.
- Organic growth has its limits – time is money, and resources can be found quickly. With the scarcity of manpower, recruitment is not easy.
- Some business sectors are highly fragmented… many small players with few resources. Market consolidation is profitable.
- An acquisition opens new opportunities for the team. Options, development possibilities and career choices increase with the size of the company.
- A larger company can afford better resources, some of them more specialized.
- By buying your suppliers – you can control the supply chain and manage the risk of delays.
- The bigger you are, the more it’s worth. EBITDA multiples increase with company size – it’s doubly profitable!
- Don’t forget the 10th reason… to make more money!