Growth by acquisition - experiences?
Discussion
Looking for some feedback from PH business owners who have grown their business by acquiring companies with similar commercial offerings.
In my experience dealing with a client who bought a business I learnt of a few horror stories.
Did it work for you?
Has it enabled you to expand into markets perhaps previously either unattainable or unknown?
Bought extra talent and fresh blood into the business which has helped?
Didn't integrate properly and caused big problems?
Existing customers nervous?
Staff a problem?
Cheers,
In my experience dealing with a client who bought a business I learnt of a few horror stories.
Did it work for you?
Has it enabled you to expand into markets perhaps previously either unattainable or unknown?
Bought extra talent and fresh blood into the business which has helped?
Didn't integrate properly and caused big problems?
Existing customers nervous?
Staff a problem?
Cheers,
Are you looking to do the same or advising a third party?
In my experience It depends on the size and age of the business's involved. I worked on aquisitions and elements of integrating about 6 business we purchased over a 3 year period. The smaller younger ones were much easier, mature business were painful and larger mature business's very painful.
I could write reams about it but don't think it's something i'd write about on a public forum. Interesting though certainly leant alot being involved in the process.
In my experience It depends on the size and age of the business's involved. I worked on aquisitions and elements of integrating about 6 business we purchased over a 3 year period. The smaller younger ones were much easier, mature business were painful and larger mature business's very painful.
I could write reams about it but don't think it's something i'd write about on a public forum. Interesting though certainly leant alot being involved in the process.
Edited by atom111 on Friday 30th November 20:21
Hi,
Thanks for reply,
Looking into it, a mergers and acquisitions company contacted us to purchase a company in a similar market.
Until we sign the NDA we don't know anything, except it has 14 employees and I think being the industry type it is, probably only around 5-6 years old (at best).
One of our clients purchased a 30 year established company, family run. What a nightmare that has turned out for him, as the owner cleverly managed to keep 15% equity and most of the building ...
Also the owner gave everyone (30 employees) a nice pay rise before he released control and signed over.
Also as due diligence was being performed his accountants stumbled across 50k of unpaid taxes due to vehicles being used for person use...
So I guess there are things to watch out for - and it can be a long and expensive process.
First question we need to ask is why is the company being sold?
Any experience you might want to share, i'd be more than grateful to read... please PM me.
Thanks for reply,
Looking into it, a mergers and acquisitions company contacted us to purchase a company in a similar market.
Until we sign the NDA we don't know anything, except it has 14 employees and I think being the industry type it is, probably only around 5-6 years old (at best).
One of our clients purchased a 30 year established company, family run. What a nightmare that has turned out for him, as the owner cleverly managed to keep 15% equity and most of the building ...
Also the owner gave everyone (30 employees) a nice pay rise before he released control and signed over.
Also as due diligence was being performed his accountants stumbled across 50k of unpaid taxes due to vehicles being used for person use...
So I guess there are things to watch out for - and it can be a long and expensive process.
First question we need to ask is why is the company being sold?
Any experience you might want to share, i'd be more than grateful to read... please PM me.
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