What are the key points to look at when considering Growth by Acquisition?
Encourages you to think strategically – you will need to have structure and processes in place in each of your individual businesses. Working on the business, not being responsible for day to day operations, is a key part of maximising your business value.
Think as an investor – always considering the return on investment.
Spread the risk – if you have more than one organisation it gives you more flexibility when considering the various challenges you will come across in business.
You may decide to raise capital by selling one of the businesses to suit your exit plan.
Larger businesses will normally generate a higher profit multiple – your business is worth more.
Strengthens your position and gives choices when developing and completing your exit plan.