If you are an existing business owner, you can increase your annual profits significantly, as well as your company’s valuation, by scaling up through an add-on acquisition versus internal growth.
You can often grow faster with an add-on acquisition versus only through internal growth activities. There is a limit on what any organization can achieve in a given period of time no matter how talented the people are – and these efforts cost money (and have opportunity costs).
You can also leverage an add-on acquisition to strengthen your competitive positioning in the marketplace. You could buy a company to increase your customer base, extend your product offerings, broaden your geographical reach or become more vertically integrated.
And you can often conduct an add-on acquisition without having to provide significant funds to do so. You can leverage the acquisition target’s assets and cash flow to help fund the acquisition. And you most likely will have revenue and/or cost synergies too so your overall cash flow will be stronger and can be leveraged.
You can achieve many benefits through an add-on acquisition, including:
- Grow your business faster
- Increase your annual profits and overall company valuation
- Expand your service or product line
- Expand into a new geographical market
- Buy out an competitor – and increase market share
- Decrease your risk by diversifying your business
- Work less day-to-day – and have a broader team to help you
Contact us for more information.