Growth entrepreneurs, also called strategic buyers, are entrepreneurs whose businesses have an active acquisition strategy in addition to organic revenue growth to accelerate their growth. This has a number of advantages: you gain access to new products, services and knowledge. You can therefore innovate better and faster than your competitors. And not unimportantly; you gain new entrances to customers through an acquisition.
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successful transactions
Big businesses always knew it. Growing a company through acquisition is faster, cheaper and often less risky than expanding under your own steam. With the entry of private equity into the SME sector over the past decade, this penny has also dropped for more and more entrepreneurs. Acquiring one or more businesses can dramatically accelerate the growth of one's own company.
Another consideration is the make or buy decision: are you going to build something yourself or take it over from an outside party? Buying something often saves significant time.
On Brookz you will find hundreds of businesses currently actively for sale. If you want to buy a business as a growth entrepreneur, you especially need to be active. You can buy a business through our platform in two ways:
The first option is to respond to a business for sale that you would like to get in touch with. You can do this by creating a 'Respond once' account. Then you can get in touch with the seller directly. You can also take out an account for six months to a year. This allows you to respond unlimitedly to all the businesses for sale that you want to know more about.
The second option is to create a buyer profile (anonymous). This brings you to the attention of both active and latent sellers and allows them to contact you as well.
Many markets are saturated and growing organically is difficult. Acquiring a business is the fastest and most effective way to grow business. Following in the footsteps of big business, in recent years we are also seeing more and more SMEs with a successful buy and build strategy. This may involve increasing market share as well as new knowledge, innovation or customer groups. Another consideration is the make or buy decision: are you going to build something yourself or take it over from an external party? Buying something often saves significant time.
In practice, the integration of different businesses often proves to be a difficult and tough process. The most common cause is the mismatch between different company cultures. This is one of the most important points of attention to make your acquisition a success. In addition, you should not count too quickly on the so-called synergy benefits. These advantages are often overestimated in advance, which leads to an acquisition price that is too high and hardly recoverable in a reasonable period of time.
Acquiring a close competitor can be an interesting step. By doing so, you can often immediately strengthen your own market position and negotiate a higher discount for a larger purchase volume. Still, not every entrepreneur feels like selling his business to the man or woman who has bothered him for years. You will have to be even more mindful of the emotions that will inevitably come into play. But if you manage to find each other despite all the sensitivities, then in practice this can lead to a beautiful combination.
Most strategic acquisitions are one hundred percent acquisitions because otherwise the business units cannot be put together. Financing will mainly have to be rigged by the buying party and will consist of its own cash resources, a bank loan and possibly input from a private equity firm. Because cash flow and cost savings can be reasonably well mapped out, the bank will generally be happy to go along with this type of transaction. Assume a repayment period between 3 and 5 years.
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