Once upon a time, I thought acquisition was a strategy reserved for big companies. I thought you needed teams of lawyers to work through phone book size agreements and complicated EBITDA formulas. I imagined strong armed tactics and hostile takeovers.
Boy, was I wrong.
Acquisition is the best way to grow your company. You can’t beat it for lots of calls at a ridiculously low cost-per-call. Acquisition opens the door to great people who may want to come work for you answering those calls. Best of all, a good acquisition is a win win. You just may help a brother or a sister out, as they transition to the next, best time of their life…as you build your company.
My column in the May 2013 issue of PHC News is all about busting the myths that may keep you from engaging this rockin’ growth strategy. I’ve gotten lots of reader emails about it, so I thought I would share a sample.
Let’s debunk a few myths about acquisition…
“My company is too small.” You don’t have to cut your acquisition teeth on a full blown remote location with millions in sales and dozens of employees. You could buy another small company. Or, you can find a disconnected phone number…and have that number start ringing at your shop. If you want to grow your company, be willing to look at why you are a small company. Maybe you aren’t very good at marketing? You can improve your marketing skills. And you could add a simple acquisition to the mix.
“I don’t have very much cash.” You could arrange an owner financed deal, and offer to pay a flat monthly fee, or a small percentage of sales from their customers. You could just buy the website or some equipment. Note that some companies are simply not worth a lot of money. Be respectful in your negotiations, and help the owner see the value of your offer and the opportunities post-sale.
Acquisition is easier than you might imagine. Read more in my PHC News column on acquisition!