Great marketing & sales are critical for the organic growth of any business – the bread-and-butter of building your future. ‘Inorganic growth’ is the 2nd half of the growth equation – mergers and acquisitions (M&A) combining smaller businesses to build scale, scope and capability.
Read the full briefing: Mergers & Acquisitions – The Other Growth Path (ICTSC17).
You don’t need a lot of cash, and when you’re ready to retire (or go broke) it’s too late. M&A is not just about an exit when you’re done or ‘getting out of jail’ when you get into trouble. It’s about strategic growth – standing on the shoulders of others, to see farther.
You’ve probably got options right now to give you a ‘free kick,’ and years’ head start on competitors.
With critical mass, you could afford more professional marketing and sales, too. Both strategies build on each other to create the real scale you need for a great exit, when the time comes, or to be a better target for investment, have access to more resources, or just ‘play the game on a bigger stage.’
Buyers often value firms as a multiple of EBIT (profit), and the combined business could achieve a multiple of 10X+ while the DIY firm could expect 5X (on their smaller profit). Half the combined business equity could be worth 7X the entire solo business.
This could make a huge difference to your retirement!