![]() ![]() There’s no way around it: Acquisitions are headline magnets. The catch is, for an acquisition to work best, egos must be checked by leaders on both sides. The process turns a competitor into an ally, allowing both teams to run faster together than they would apart. M&A is a fundamental strength for early-stage companies because it can accelerate growth. Is this acquisition better for our customers and both teams-or just my ego? So, before you move forward with an acquisition, ask yourself: Why now? 3. When two companies merge, their resources can be deployed more efficiently by growing within their existing markets instead of constantly activating new ones. Instead of devoting energy to a launch, acquisitions make it possible for your team to devote more time to filling out revenue channels. Going to market from scratch requires time and resources. Plus, you can think of acquisitions as a way to fill your revenue channels. When you have the infrastructure and bandwidth to integrate with a new team and tool.When you find a company that can accelerate your growth plans.When you find a company or technology that has already solved a major problem you’re actively looking to solve.Here are a few indicators that the time might be right: How do you know when the timing is right? Many subjective factors go into timing an acquisition. The acquisition made it possible to fast-track our entrance into the health plan market, with a product that had already been tested by market leaders. The key to acquisition timing can often come down to the ability to quickly enter a new market. We’re putting the infrastructure in place today that can handle the coming “silver wave.” By 2030, about 20% of Americans will be 65 or older. I believe demand for aging-in-place services will only grow. But the reason for our success, at least in part, came down to timing. In 2020, we acquired another company.Īcquisitions have been a favorable tool that enabled us to multiply our growth while continuing to serve our clients more effectively. I'm seeing older adults planning to stay at home as long as possible, and long-term care insurance and medicare advantage insurers are eager to support them.Īt the top of the article, I referenced Andy’s company, which we acquired in 2021. With the booming older adult population, aging in place has become a growth industry. Is now the right time to acquire another company? A misalignment of vision means overlooking the vital soft skills that foster a collaborative workplace. I believe vision runs deep, seeping into the company culture of every department. To be clear: A conversation about vision doesn’t stop at the founder level. It might take a few face-to-face meetings to really understand the other team and figure out the complementary strengths that the other needs.īefore you move forward on an acquisition, ask: Does this team accelerate our vision for the future of the industry? Do we complement each other so that both companies, with our shared vision, can grow faster together than alone? What makes an acquisition successful is when visions are aligned. ![]()
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