Why A Growth By Acquisition Strategy Should Be In Every Company's Plans
Obviously the more profit (cash) a company can generate the higher the value of the company, but what is surprising is that each dollar is worth more as a company grows as is shown by the graph below:
Many other Drivers of Value can be helped by an acquisition strategy:
- A larger company can employ a better quality of management and so reduce the owner’s role,
- More resources are available to generate and maintain the documentation required,
- A better standard of bookkeeping and accounting is possible,
- More resources can be devoted to growth,
To turbo-charge your growth a merger can often be advantageous.