| Growing a company organically can be a long and | | | | You can also find them by talking to others in |
| arduous task. Developing products and services. | | | | your industry, including your competitors. |
| Marketing and selling. Building a relationship with | | | | You'll most likely need help from professional |
| customers whilst all the time worrying about the | | | | advisers when you decide to actually make an |
| costs and whether your business will work. | | | | acquisition but your initial investigations can be |
| An alternative way to achieve a fast increase in | | | | done at a low cost and with minimum disruption. |
| the size of your company is to make an | | | | It's up to you whether you choose to look for a |
| acquisition. This means buying a company that | | | | business that's smaller, the same size or even |
| you can merge with your existing business. | | | | bigger. It really depends on what your plans are. |
| Sometimes the investment you would have to | | | | You may even find yourself inspired to move into |
| make to reach a certain size in 2 to 3 years can | | | | a different industry when you find what's available. |
| be more than the cost of acquiring a company | | | | Of course, acquisitions don't come without their |
| that could get you there tomorrow. So it's worth | | | | own special challenges, so you'll need to |
| considering. | | | | understand the risks and rewards involved in |
| This can even work if you are starting up. We | | | | buying someone else's business. However, if you |
| raised finance for starting a business and, before | | | | set clear objectives and create a solid action plan |
| we even embarked on implementing the business | | | | then it's something that can really work for you. |
| plan, we found one of the main competitors in the | | | | Make a list of what you want in your own |
| market was up for sale. After agreeing it with our | | | | business. This could include more customers; more |
| investors, we made an offer and acquired the | | | | products or services; bigger offices; more |
| company for a good price. Within 6 weeks we | | | | experienced staff or any other items specific to |
| had a fully fledged business completely up and | | | | your needs. |
| running, with an established name, services, | | | | Then start your search for companies that fit |
| customers, offices, staff and a year's worth of | | | | your criteria and at the same time calculate how |
| marketing already done for us. It jumped us at | | | | much it would cost you to achieve all your |
| least 18 months ahead in our business plan and | | | | objectives by doing them yourself from scratch. |
| probably saved us over £500,000 in costs. | | | | Once you find some companies that match what |
| If you already have a business or you're thinking | | | | you want, you can start making approaches and |
| of starting one, then it's worth taking some time | | | | offers. Your calculations will show you how much |
| to investigate the opportunities in your chosen | | | | you want to pay by comparing what the |
| market and seeing what's available. One of the | | | | acquisition would bring you against what it would |
| biggest advantages of buying a business is that it | | | | cost to build it yourself. And you may be able to |
| can bring a ready-made customer base. And | | | | pay a lot less than that. |
| whatever business you're in, you'll know that the | | | | Just imagine, after reading this, you could find |
| costs of acquiring customers can be significant. | | | | yourself in 6 weeks time with a business twice |
| You can find businesses for sale through the | | | | the size of your current one and with many more |
| internet and through specialist business brokers. | | | | opportunities to explore. |