How to rapidly scale your business.
Study these 5 acquisition tactics:
Study these 5 acquisition tactics:
EV Acquisition Arbitrage
It's buying companies or assets...
At lower multiples than your company is valued at.
Aka, I own a media company I can sell at 2-5x revenue. If I buy a marketing company at 2x PROFIT...
Instant valuation bump.
It's buying companies or assets...
At lower multiples than your company is valued at.
Aka, I own a media company I can sell at 2-5x revenue. If I buy a marketing company at 2x PROFIT...
Instant valuation bump.
Here's an example:
LinkedIn shares were worth $130.
Microsoft's were $190.
Microsoft announces the acquisition of LinkedIn.
LinkedIn's shares magically leap from $130 to $190.
LinkedIn shares were worth $130.
Microsoft's were $190.
Microsoft announces the acquisition of LinkedIn.
LinkedIn's shares magically leap from $130 to $190.
You can replicate this valuation bump over & over with your small business.
Here are 5 ways how:
Here are 5 ways how:
Can't Beat Em Buy Em
Acquire your competitors.
I bought out another financial firm that was snaking my customers.
They were a mosquito just nibbling at us, but after I bought them...
I turned them into a vampire of other companies.
Acquire your competitors.
I bought out another financial firm that was snaking my customers.
They were a mosquito just nibbling at us, but after I bought them...
I turned them into a vampire of other companies.
Stop Paying Google for Leads
Instead, acquire a content company.
Ask yourself this:
Who is already aggregating the eyeballs of your ideal customer?
Then buy them.
Instead, acquire a content company.
Ask yourself this:
Who is already aggregating the eyeballs of your ideal customer?
Then buy them.
Need Bigger Cart Sizes?
Buy another product or service and bundle it.
This is what Adobe did with Figma.
They'll eventually bundle into their products if I'm a betting woman.
Buy another product or service and bundle it.
This is what Adobe did with Figma.
They'll eventually bundle into their products if I'm a betting woman.
Want Higher Lifetime Customer Value
Usually, this means you don't have recurring revenue assets.
So go find someone who does, and buy them.
They don't need to be big as long as they increase your ARR.
Usually, this means you don't have recurring revenue assets.
So go find someone who does, and buy them.
They don't need to be big as long as they increase your ARR.
Going Stale as a Company?
Get new R&D teams, products, and services by buying intellectual property.
Or do an acquihire of tech talent.
Get new R&D teams, products, and services by buying intellectual property.
Or do an acquihire of tech talent.
Acquisition Arbitrage 101
1. Buy your competitors
2. Bundle additional products
3. Acquire a biz w/ recurring rev
4. Get intellectual property & talent
5. Buy a content co. your customer knows
1. Buy your competitors
2. Bundle additional products
3. Acquire a biz w/ recurring rev
4. Get intellectual property & talent
5. Buy a content co. your customer knows
M&A is an incredibly powerful tool if done intelligently.
Let's play a game...
Drop the company you run below and I'll riff on how I'd do acquisitions to grow it.
Follow @Codie_Sanchez and RT if you want more of these threads in the future:
Let's play a game...
Drop the company you run below and I'll riff on how I'd do acquisitions to grow it.
Follow @Codie_Sanchez and RT if you want more of these threads in the future:
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