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Growth Through Acquisition in the Lower Mid-market

Growth through acquisition has been a strategy largely used by mid-sized and larger companies for years. Now firms in the lower mid-market are getting into it as well.

Under this strategy, a company buys another entity for reasons that include:

  • building market share
  • gaining access to a new market
  • getting special skills or services offered by the target
  • to get access to skilled personnel in an increasingly tight labor market

An acquisition can greatly compress an organic growth strategy which could take years and major strategic investments to accomplish.

We are seeing smaller companies in the region achieving scale more quickly with acquisitions, one of which is referenced in the second article in this newsletter where a N.H. company acquired part of a Maine entity for just this reason.

This process involves targeting competitors or related entities for acquisition. When another company is purchased and combined with the acquiring entity, the result is a larger, more dynamic business. The goal is to grow the top line, and then - through efficiencies, market expansion, greater customer reach – to grow the bottom line for the combined entity as well.

Owners engaging this strategy should have the long-term in mind. It may take months or years to fully achieve the potential value.

There is an added benefit to the new ownership: the company is larger and more likely to be of interest when the time comes for a sale.

Our team will work with owners and other advisors to plan out and initiate such a strategy.

 

 

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BTS News

  • Growth Through Acquisition in the Lower Mid-market

    Growth Through Acquisition in the Lower Mid-market

    Growth through acquisition has been a strategy largely used by mid-sized and larger companies for years. Now firms in the lower mid-market are getting into it as well.

    Read more >

  • PEI Cites 8 Attributes of Quality Deals

    PEI Cites 8 Attributes of Quality Deals

    Quality deal flow is among the top concerns for M&A advisors. A recent blog posted by Private Equity Information offers 8 key attributes of “quality deals.”

    Read more >

  • In an M&A Program: Why Consider a Business “Carve Out”?

    In an M&A Program: Why Consider a Business “Carve Out”?

    An M&A program need not be limited in the search to the complete acquisition of a company.

    Read more >

  • The BIA Report on Consumer Confidence

    The BIA Report on Consumer Confidence

    "NH consumer confidence remains high" according to the latest BIA Survey conducted October 10 and October 18, 2018 by the UNH Survey Center.

    Read more >

  • Business Transition Snippets

    Business Transition Snippets

    Here are a few observations we culled from sources we regularly review that relate to business transitions.

    Read more >

  • What to expect in the LOI exclusivity period

    What to expect in the LOI exclusivity period

    A question that often emerges when reviewing proposals for acquisition with owners is the exclusivity period.

    Read more >

  • Growth through acquisition isn't just for the big companies

    Growth through acquisition isn't just for the big companies

    Growth through acquisition Is a valid strategy for businesses in the lower mid-market as well as the mid-market.

    Read more >

  • The exit decision- timing and issues

    The exit decision- timing and issues

    When should a business owner start thinking about planning their exit? Early! This is a high-stakes decision and should not be first contemplated when it is imminent.

    Read more >

  • April PEG investments

    April PEG investments

    It is interesting to watch trends in private equity investments. In general, they reflect confidence in the value of making things. Transactions give insights on the broader acquisition environment, p

    Read more >

  • M&A among top priorities of CEOs

    M&A among top priorities of CEOs

    CEOs in wide range of sectors are optimistic about the current business environment and significant segment listed mergers and acquisitions among their top priorities.

    Read more >

Case Studies

  • Precision Machining Company

    Initially, liquidation was a serious consideration. It would offer a quick exit but would hurt loyal employees and disrupt the customers who had come to rely on its quality production.

    Read more >

  • Green Product Company

    Our client owners could dig in for the long haul…However, this would take five years or more. Owners simply lacked the horsepower to do it.

    Read more >

  • Water Purification Company and Young Buyers

    Owners decided they wanted to retire. They also wanted to be fair to the staff who had been loyal to them. Could the company be sold, the staff retained and the facility remain in use?

    Read more >

  • Magnetics Company with High Profile Customers

    (T)he manufacturer would need to focus on growing EBITDA to capture interest from major strategic buyers and achieve a higher multiple of earnings.

    Read more >