“There’s no faster way to grow than to acquire a complementary business” – Roland Frasier
In this snack-able episode of Business Lunch, Roland follows on from last weeks 4 Step strategy to 10X your business, diving deeper into the subject of acquisitions (last week’s 4th step).
Roland proposes that as a benchmark, the business that you’re going to acquire should be generating 25% of the revenue of your existing business, in order to be generating enough to ‘move the needle’.
Listen for these seven components that make up the ideal acquisition candidate!
1. Media, Pretty much anything that has the eyeballs of your customer or your prospective customer.
2. Resources, (can be a physical asset or otherwise) that you want! For example, a team.
3. Services, that your company is paying for – or that they already sell to your existing customer (or ideal customer).
4. Products that your company is already buying from the target or that they already sell to your existing customer (or ideal customer).
5. Supply Chain. Anybody that you’re buying from, be it physical or content – buy that source and pick up the margin that they were making on you.
6. Distribution Chain: Who are the distributors of the products or content or services that you’ve got right now? If you are able to acquire the retail outlet (for example) you can pick up their margin.
7. Your competition! Whether direct or indirect.
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