Why should you include Acquisition in your growth strategy? And why is now the perfect time?

Acquisition, as a growth strategy, can help in the robust positioning of your business in today’s highly competitive market. It does so by driving a rapid expansion of the resources in addition to geo expansion, product expansion, and market expansion- accelerating growth and revenue at a much higher rate than conventional marketing approaches.

Yes, organic growth strategies can also help you achieve all that, but it won’t happen overnight. It could take years of constant effort to double your company’s evaluation.

How Growth by Acquisition Can Enhance Your Core Business

A strategic acquisition can be pursued as an investment to acquire new technology skill sets, improve local penetration, gain a competitive edge, expand augmentation capabilities, and reduce market competition. Here is how you can use it for your core business and generate actionable results.

1. Easy access to new age startups

New-age startups are ideal for acquisition because they have the desired technology skillset. It is also easier to acquire such a team than to build one from scratch.

Many startups are working on innovative solutions that can help your company diversify its services. You may consider acquiring them for horizontal or vertical integration.

2. Exposure to the Global Market

With the right acquisition, you can build a broader customer base for your business and boost the visibility of your business globally. This strategy will further help you penetrate the existing market and increase the value of your market share. Achieving this otherwise could be a challenge and demand a lot of time.

3. Brand Visibility

Marketing strategies majorly target ways to reach larger audiences. Expanding and entering a global market with M&A will naturally boost your brand’s visibility and improve customer engagement.

4. Low Competition

The success of modern businesses is defined by the number of intellectual property (IP) owned by them. For most firms, acquiring its IP is the quickest way to take over.

By adopting an acquisition strategy, you decrease your market competition because you expand not by exceeding the revenues made by your competitors but by adding their resources to your own and building a bigger and stronger team.

5. Revenue Expansion

Synergetic acquisitions?can create value and boost revenue for your business by expanding cross-selling opportunities. So, you don’t need to acquire small businesses from your field of work only. You can also explore other sectors that will complement your existing services.

6. Diversification of Services

As discussed earlier, M&A doesn’t confine to a particular business domain. You can take over businesses that you think can potentially grow in the future. For example, in 2001,?Coca-Cola acquired Odwalla?and got into the production of fruit juices, energy bars, and smoothies, owing to the change in the eating habits of Americans.

The diverse acquisition strategy is a sustainable approach to protect your business during unfavorable market conditions;?32%?of the corporate respondents second that.

7. Quality Staff

According to a report by McKinsey,?87%?percent of the companies are either facing a shortage of skilled professionals or will face it in a few years.

M&A can be an effective way of?acqui-hiring?top talent in the market, but you need to identify the right business that is in synergy with your own. For example, a company with robust management and built-in systems is best suited for a buyer whose business requires streamlining of internal operations.

So, focus on the people and systems if you want to land a successful acquisition.

Why Is This a Perfect Time to Adopt This Strategy?

COVID-19 pandemic hit the industrial market as a storm we never saw coming. It has made business owners more attentive and receptive than ever. Post-pandemic, as the global market has continued to be volatile, now is the right time for businesses to make an impact and sustain themselves for the future. Small acquisitions at this time can be beneficial for companies to stay ahead in the market competition by bringing in the right talent without having to deal with the hiring hassle.?

The acquisition growth strategy is already gaining popularity among business owners. A?yearly review of M&A?reported that 80% of the deals closed in India by the end of 2021 were by new buyers. In the US,?21,107 M&A deals?were reported in 2021, as compared to 15,103 that were reported in 2020. An exponential increase in numbers is expected in 2022 as well, making this an ideal time for M&A and gaining financial growth.?

Close the Real Deal with GrowthPal!

We at?GrowthPal, offer a unique ecosystem that allows companies of all stages to choose and invest in the best acquisition deals. We use data-driven intelligence to ensure a secure and discrete transaction between the two corporations.

Having access to more than 2 million startups, we have achieved maximized closing with 90% accuracy. Leverage our single-point ecosystem to accelerate your acquisition process – bringing it down from 3-6 months to just 2 weeks!?Get in touch?with our expert team to know more.

Join our dedicated Programmatic M&A group to get regular updates around how to build your M&A pipeline, M&A best practices, recent trends and intelligence around active targets looking to get acquired or acquihired and much more.