If your business isn’t growing, it’s dying
Buying or selling a business are the two main processes that many associate with merger and acquisition activity, but what many people fail to realize is that business growth is just as predominant in the M&A process. Whether you’re merging with a partner or making a value enhancement before you exit, your business is in a continual state of growth. And as the age old saying goes, “If your business isn’t growing, it’s dying.”
But before you even start on the path to growth, knowing your company’s value is essential. Without a business valuation, you may be seriously undervaluing your business and therefore lowering your investment potential, giving away more than you should. However you’re looking to grow, or even exit, without a business valuation, you might as well give some of your business away for free.
If you were suddenly hit with the opportunity for a major new contract, would you be able to respond and grow your business to take it on? Entering into a partnership, finding a bigger partner or releasing equity in favor of some big returns through capital infusion could be the answer. These avenues of growth would see your resources and capital multiply, giving you the ability to take on larger business leads and, in turn, expand to get where you need to be.
If your industry was heading towards a boom, how would you take advantage? Do you have the workforce and resources to cope with an increased demand? Do you have the capability to grow with it or would you fall behind?
Joining forces with a likeminded partner to form a strategic alliance that mutually benefits the growth of both parties would widen your service offering and significantly increase your market potential. On the other hand, you may be after a way you can grow with a little less influence from a partner. In this case, you may choose to work with a partner who will invest in shares to fund your growth but won’t necessarily have much strategic input.
So how are you going to secure the right growth opportunity for your business? Do you know how to determine the optimal partnership for the growth you’re seeking?
It starts with knowledge; knowing your business inside and out and knowing your growth potential. At Generational Equity, our conferences will help you to utilize this knowledge and understand which growth option is right for you. We’ll help you to realize your business value before you make your next move, so you can do the most for your business. Whatever your goals, wherever your business is headed – it all starts with Generational Equity. We’ll get you there.