It’s fantastic to see a local business grow to a huge size and still stay loyal to its geographical roots. Euro Garages began its life in sunny Blackburn and is still in sunny Blackburn, having resisted any temptation to move to the bright lights of the big city. It is by no means the only example though, with Daisy Telecom still based in even sunnier Nelson.
Both companies have put acquisitions at the heart of their growth strategy and have shown how to make them work. The gloomy statistics put out about how something like 50% of acquisitions fail to deliver the hoped for value just show how important it is to get things right.
Firstly, both these companies have a clear strategy which makes the decision about what to buy and whether it is worth buying much easier. Woolly thinking destroys value.
Secondly, they have a tried and tested business model into which they can integrate their acquisitions to maximum benefit.
Thirdly, they have secured external equity investment in one form or another to fuel their growth plans. The expected increase in value outweighs the proportion of ownership relinquished.
But you don’t have to be a Daisy or a Euro Garages to make acquisitions work for you. SMEs can also play this game. Have a clear growth strategy. Be positive about how you are going to integrate your acquisition and make it happen. Don’t be afraid of external investment.
Finally, get help. PM+M Corporate Finance have the experience and contacts to help you drive your growth ambitions. For more information, contact Jim Akrill (firstname.lastname@example.org or 01254 604353) or Tim Mills (email@example.com or 01254 604302).