OUR SERVICES


• Business Brokerage Services
• Business Sales... detail
• Business Acquisitions... detail
• Business Valuations
• New Franchised Business Sales

MERGERS AND ACQUISITIONS


Sell-Side Representation
>Buy-Side Representation
• Sell-Side Due Diligence
• Buy-Side Due Diligence

Confidential Consultation


You can rely on our Business Intermediary Services to deliver. We offer free confidential consultation to discuss your Exit Strategies and/ or Acquisition options. Call (416) 364-5550 Or ....eContact Us

Jul
23

Acquisition Strategies for Small Businesses

By

small business ArticlesGrowing Through Acquisition

Growth is not only the exclusive preserve of large or public companies. Small scale businesses also have the right to grow and can even acquire other businesses in the process of actualizing this goal. A business acquisition can lead to a spike in sales and profits. But it must be done right.

Here are some acquisition strategies that work great for small businesses.

  • Acquire a Company

Acquire a company with smaller price/earnings ratio than yours. For instance, if your business with a P/E ratio of 15 acquires a smaller company and pays 10 times in earnings, this means that the smaller company of 10 million dollars in earnings is added to your company. Your newly acquired company is now worth 15 times more. This leads to an increase in earnings of 5 times or even $50,000,000 over and above what is paid.

  • Buy into a Plan

When you acquire a new business, you do not buy it because you have money to splash or because it is available. You buy because it complements your preexisting company and can make it even more competitive in the marketplace.  Before you buy, you should consider the channels of distribution, product potentials, technological opportunities, overseas market, franchising and the quality of workers available.

  • Develop the Plan

A good plan always begins with a SWOT analysis. You need to take stock of your company’s strengths, weaknesses, opportunities and potential threats. If you can put all these things in proper perspective, you have a strong idea of what type of business you should be looking to acquire or pay top dollars for.
For example, if you own a printing service company with an annual gross of 5 million dollars for producing high-speed black and white forms and manuals for the IT industry, you should consider an opportunity to start an alternate printing service that caters towards a different customer base.

  • Design and Search

You can use the Internet to bolster your plan. Utilize the databases available online to find businesses of interest. Find out where they are located, their annual revenue sales, how many employees they control and their range of products.

Once you settle on a crack list of acquisition prospects, you can mail them, call them or even pay them a visit. You can do this yourself or employ the services of a professional to broker the deal for you. Remember that the timing must be right and that you have the cash readily available to conclude the deal.

Acquisition Strategies for Small Businesses >> HAVE SOME RECOMMENDATIONS ABOUT SELLING BUSINESSES? LEAVE THEM AS A COMMENT.

Categories : Blog, Tips/Articles

Comments are closed.

SELLING A BUSINESS


Looking to sell your business? Selling your business confidentially & in top dollars needs preparation, patience, & right Business Brokerage Service. We market & process your sale while you concentrate on your business operation.....details

BUYING A BUSINESS


Considering buying a business? We can assist you find the right business & manage the entire buying process to ensure a successful transaction. For matching business opportunity suitable for you, let us know your preferences. ...details

VALUING A BUSINESS


Right pricing results in quick sale of a business. Overstating or underestimating business value can be costly for an owner. We help our Client avoid costly mistakes by valuing a business that can help you make/ save when buy or sell....details

AFFILIATIONS

footer carousel