Acquisition buyers acquire companies that are add-ons to their current business. This often involves an acquisition of direct competitors, complimentary companies, or geographic strategies. Whether you are getting rid of competitors, adding a service that you didn’t already provide, or stretching your reach to other locations, the acquisition process is an excellent way to grow your business.
An acquisition will often cause your company to run more efficiently. If you have the capital to buy out your manufacturer and control the factory, why wouldn’t you? This will create a greater synergy within the workings of the business.
Acquisitions can lower risk, especially if it means acquiring your competitors. It is also another way to faster reach a sales objective, because it gives you a larger customer base to work with. Businesses have statistically proved to obtain higher growth rates after an acquisition.
The acquisition process is also a great way to receive financing. In the current market, it is difficult to find banks that will hand out loans, but banks consider acquisitions a positive process and are more likely to finance your venture.
So why are you waiting to begin your acquisition and grow your company? Contact an M&A advisor at George & Company to begin the acquisition process today.