I hope through this series that I have given you some ideas about this notion of inorganic growth. There is a lot of potential value here. Business Growth is absolutely attainable. So why do so many small businesses not go through this path? The answer is the risk. There are so many true stories of failed acquisitions that people are gun shy. And the truth is that this is a risk.
So what is the best way to mitigate the risk? The best thing to do is get good help. Let me go over the elements involved in the process to make sure you know where to go.
There is the Strategic Planning Element. You might have a Board of Directors or Advisors. Those are great people to talk to first. If you don't have this kind of help, you may consider it. The viewpoint of an external observer can help provide a different perspective on any plan.
There is the Deal Element. Each transaction is a significant effort in valuing the business and performing due diligence. Do you really want to read every contract? Do you have the time or proficiency to go through the Financial Statements? There are M&A Advisors out there that can help make sure that you are getting the right deal.
There is the Execution Element. Assuming you have a good plan put together, you might wish to hire a Project Manager with M&A Experience. This helps keep all the things that have to change on track. This goes from the large as Communications Plans to the minute like Address Changes. If you don't have the extra time, then you might want to consider getting help.
All of these advisors can be built into what are called Deal Costs. Anytime there is a transaction like this, there are costs incurred. There is nothing for free. But the help involved above is well worth the price of getting the deal right.
I am one of those Advisors who can help companies in any of the 3 elements.
Have a great day!
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