Last month, I shared how you can easily double your profit and sales in an afternoon. One simple tactic is to merge with a competitor.
A Merger is just an acquisition but instead of using money you use shares.
Post-merger both businesses will have their own Managing Director, their own accounts department, their own office space. So, there’s lots of costs that when you join forces become duplicated.
There are many magical benefits to your business when acquiring a competitor:
- You don’t need two of everything, so you increase profitability immediately
- More profitability means your business can be sold for much more
- You benefit from Succession planning, ready for when you want to step back or sell your business
- “Merger Conversations” with your competitors are easier to start than a normal takeover acquisition
Feel free to get in touch to discuss how you can buy a small company using none of your own money and then merge it with a larger one that you can then exit together. I hope this gives you some bit of food for thought. If you want to get some innovative tactics… get in touch.
If you want to find out more or to see if Robbie can help you; contact him directly on +44 07900 555217. No waffle just expert advice and investment. You can visit his private equity firm here www.K-ZenGroup.com
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