by Mark Lagasse
There are some truisms in business, “Everyone in the organization needs to be rowing in the same direction” or “The organization is only as strong as its weakest link”. There is also a truism when it comes to growth, “It is much faster to grow through acquisition than organically one customer at a time”. Why would you want to risk expanding your geography by scratch starting new locations or sales territories when you can purchase an already operating sales base.
What is important to consider however is that increasing the size of your business significantly virtually overnight will put pressure on both the base business and the acquired entity. That is why it is very important to assess your current infrastructure, resources, and operating processes. This includes determining the “bandwidth” of your company’s systems and management personnel. The focus should be to answer the following questions: Can your organization handle a large increase in workload? What resources do you need to implement a growth through acquisition plan? And how will you ultimately integrate a new business into your existing operation?
BTS can help you formulate and implement pre-acquisition plans. We can help you determine what type of target would best meet your growth goals. And we can prepare a potential target list. We can also offer high level preliminary due diligence and help identify and quantify the synergistic benefits of an add-on acquisition.
Whether you need to prepare for a sale or a purchase, let BTS help you get it done right. Please send us a note or give us a call. We will arrange a no obligation discussion of your situation and options. One way to easily do this is to complete our confidential contact form or via email.
BTS News
Manufacturer Sold and New Owner Expands It
BTS served as advisor in the sale of PlasTech Machining Fabrication, Inc. to DelCam Holdings in 2020...the company has grown substantially, doubling employment and adding capacity to boost future prod
How M&A Will Respond to Next Recession
The takeaway for business owners: Get back to basics. Don’t worry about hyper growth. De-risk your company as much as possible.
Perception vs Reality with Small Businesses
Sometimes the economic picture on the news seems inconsistent with what is happening for many business owners. Nearly every owner we speak to is out straight.
NH-Based Techinical Manufacturing Company Sold
Hampshire Controls has a bright future with new ownership. The company was recently sold by Diane Rush, owner and president, to Pillar Imaging and its leader Dr. Michael Pilon.
Be Ready When You Are Ready
When a business owner says it’s time to sell, I ask, “How fast do you want to be out?” The answer I hear most is, “Yesterday.” But sellers underestimate how long the process takes.
Looking at a Sale Through the Right Lens
Sometimes our vision about the future is blurry because we aren’t considering the whole picture but only parts of it.
5 Deal Points from the Trenches
Today I work with clients of Business Transition Strategies who are implementing Growth Through Acquisition strategies. Here are a few observations from working on a wide variety of projects.
Tax Changes Could Hurt Net Proceeds
Changes proposed to the capital gains tax suggest they may need to get 30% more in a transaction in the future just to net the same value they would get today.
Good Ideas From Shark Tank Deal
One of my colleagues in Cornerstone Alliance was front and center in a recent Shark Tank exercise. A business that had been sold was put in front of four potential buyer groups.
Buyer Trends in Lower Mid-Market
Other businesses are a significant market for companies being sold within the lower mid-market.
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.
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.
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?
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.