Businesses are always looking to drive growth but the companies that are set to make a killing are those with their eyes open; businesses and leaders who are switched on to the plethora of growth avenues open to them.
Bearing in mind that it's often the more obscure ideas that result in the greatest profit, let’s take a close look at the growth power behind one often neglected route to growth: strategic bolt-on acquisitions.
Break it UpAt the initial point of enquiry into the M&A market, most business owners or management teams tend to bring a clearly defined vision of what they hope to achieve from making an acquisition. Motivations are usually growth and profit, but the methods for achieving these aims tend to be relatively narrow in scope.
Easing expansionSpringfield Homecare Services Ltd, part of the Springfield Healthcare Group, did just this with its bolt-on acquisitions. The business is one of the largest independent providers of domiciliary care in the North of England, but being unsatisfied with its already strong market position, the firm set out a strategy for market growth that revolved around several targeted bolt-on acquisitions.
Buying assetsOther savvy business buyers who know just what they're after, are turning to bolt-on acquisitions for specific resources, sifting through departments, teams, IP and other assets to identify where the value lies for them.
Private Equity – Bolting on ValueIn another league altogether are the private equity firms that look to bolt-on acquisitions as a powerful driving force for growth, often with a more immediate view to profit. Private equity-owned firms in particular tend to spearhead this route as their financial backers can see bolt-ons as a means of quickly increasing the value of a company before selling it on for profit.
Offers a comprehensive range of over 7,000 product designs, standing apart from competitors for the breadth of its offering, its short lead times and its customer-focused services.
Operates nationwide and has provided its services internationally. Services 42 active clients with contracts in place. Scope to develop a training environment to recruit and train new engineers.
Provides property managers, letting agents and facilities managers with access to engineers across 100 service lines from plumbing to civils to lifts and M&E. Client base includes some of the largest and most-recognised names across market segments....
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