As the global stock trade is increasing alongside a general easing of regulatory practices, this year has begun with a very strong footing. It now seems that this could be the time for advisors to make plays that will both improve growth and strengthen their positions in the market.
However, it’s not easy for business leaders to be aware of the right avenues to take. Some experts believe it might be time to consider expanding your business via an acquisition. Here are some of the potential benefits of doing so.
Boost business growth
Are you unsatisfied with the growth of your organization? If so, consider making an acquisition for much faster results. Instead of going the proven, yet time-consuming, route of expanding your business customer by customer in long-lead sales cycles, try something new, grow your list of clients with a single maneuver and slash the necessary time needed to reach your targets.
Grow your margins
When you acquire a practice you take on an influx of new customers but not necessarily any overheads. Do you already have landholdings, employees, and processes set up? If so, an acquisition could be beneficial to your bottom line.
It’s said to be one of the fastest ways to grow a practice because of how quickly your customer base, services, and referrals can expand. It allows you to add talent, expand your reach, excite existing staff with new prospects, and provide more specialized services for your existing clients.
Get full support
Many broker dealers are providing support to acquisition seeking advisors and will help you to identify potential targets. Assuming you have already identified a practice, they will still take the time to perform valuation, financing, and other bits of important but time-consuming work so that you can concentrate on the day-to-day running of your business. They can even help you with on-boarding and attend all important meetings with you while walking you through the process as it unfolds.
Take advantage of flexible financing
It’s not necessary to have all the money upfront as there are many finance options available to assist with acquisitions. Many firms either have in-house money lending departments or work with established lending resources so you can certainly get the financial help you need rather quickly.
In fact, there are a wide range of options available to those with work with broker dealers. These include strategies to ease transition, retain the top performing customers, and more. Working with a strong broker-dealer can give you a broad array of options, including helping establish exit strategies for existing
management to ease transition and retain key talent.
The key to a successful acquisition
Not all acquisitions are successful. In fact, it’s been estimated that around 70% of M&A deals fail to expand a buyer’s business. The key to a successful acquisition is targeting a company that will help your business expand.
This isn’t just about searching for a business which offers something you don’t. It’s also about finding a business owner who has similar ideas about the future as you.
Succession Link has built an online platform that makes it easy and convenient for you to find the perfect buyer for your financial practice or to locate a practice that is the right fit for an acquisition and the growth of your business. Click the link to find out how Succession Link can help you.