a. An acquisition provides instant scale and great opportunities for efficiency. Whereas starting from scratch is a time consuming process and does not come with any success guarantees.
2) Market Power
a. Building market presence takes years worth of time. Acquiring a new business gives the business owner a higher percentage of the market with little effort while also decreasing their competition.
3) Competency & Resources
a. Outside of adding to your physical footprint, an acquisition is a direct line to new expert professionals, innovative processes, additional revenue resources, and a larger pool of data.
4) Financial Advantages
a. There are a number of financial advantages gained through acquisition from not having the expense of starting from scratch to asset stripping and implementing efficiencies of scale.
5) Reduced Barriers
a. Entering a new market can be a costly venture from the upfront research to building a client base. Buying an established business, however, allows an owner to overcome these market entry barriers.
Browse: Home / Growth Through Acquisition By: Transworld Business Advisors
By Nickie on April 2, 2018