Growth thru Acquisition
The economics
of growth of a business thru acquisition of a target company is generally more
favorable than attempting growing sales from within. Merged Sales volumes from an acquisition are
realized today's sales volume and stand-alone or organic growth of sales may take years.
This concept of
growth is practical because the acquisition is reachable because of seller or
bank lending services.
Think about this:
Expenditures from your company and
Expenditures from the Acquired
Company
can be selectively reduced or even eliminated.
i.e.
- RENT
- INSURANCES
- DUPLICATE
EQUIPMENT
- UTLTITIES
- WAGES
- ADVERTISING
Results equal
less expenses and then fewer expenses equal more cash to pay assistant manager
And
pay your bank or seller debt services.
FACT:> virtually all businesses gross revenues have
50% C.O.G.S. and that leaves 50% for direct /selling expenses. It is the 50% balance of revenues, gross
profits, which can be synergized to then eliminate duplicate expenses. Thus this increase profit from the merger of
assets will pay the new bank debt or seller debt, Principle and interest.
1.
Who is your target company owner
- Seller who has pasted away;
- Divorced;
- Retiring;
- ust Doesn’t
Want it any longer
2.
Absentee Business owner
3.
Find a company where your knowledge is leveraged into
another company
4.
Just Do It in Little Steps (smaller little companies)
Got some more
ideas or questions, let’s discuss, AJ Richwine CCIM
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