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W hile M&A is not a strategy in and of itself, it is an extremely powerful tool to amplify your growth goals. You can use it to implement your blueprint while substantially increasing your value in a short amount of time. Force multiplier You can leverage M&A to accelerate strategic shifts and implement your growth strategy, but there are plenty of risks along with the reward.
would be two firms with complementary services working in two separate market sectors. This gives two $10 million net service revenue firms the chance to earn $40 million together. If you are simply looking at a geographic expansion, 1+1=2 is about the best scenario that can be achieved. As “You want to boost your performance or ‘hack’ your way to long-term growth? First, you’ll need to determine your strategy, vision, and goals more than simply seeking growth in revenues and market share.”
You want to boost your performance or “hack” your way to long-term growth? First, you’ll need to determine your strategy, vision, and goals more than simply seeking growth in revenues and market share. What impact would opening new geographies have? For example, moving from a single location in Texas to a presence including Raleigh-Durham and Los Angeles. Maybe the force multiplier for your firm is expanding services. Would your clients see value in your ability to move from an engineering-only firm to a fully integrated AEC firm? How about adding new market sectors such as healthcare and education? While you cannot acquire your way to a healthy firm, you can use M&A to accomplish what’s most needed to put yourself on the long-term track to success. I am not talking about the old 1+1=3 cliché, but shooting for a 1+1=4 or higher. The example here
Phil Keil
See PHIL KEIL, page 4
THE ZWEIG LETTER September 11, 2017, ISSUE 1215
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