Are you missing out on opportunities for growth? External growth, where you partner with another organization outside of your own, is often a neglected opportunity. External growth comes in many forms including mergers and acquisitions, joint ventures, strategic alliances, minority interest, and can be tailored to suit your needs. Here are three reasons why external growth might be the best option for growing your company.
- Organic growth is anemic – Adding more salespeople, building a new product, and increasing advertising are all proven ways to grow a business, but what happens when organic growth doesn’t move the needle? Consider external ways to accelerate your company’s growth.
- Markets are shifting – In today’s fast-paced business world, you must quickly adapt to change or risk being left behind. This may mean reducing your reliance on a shrinking market and entering into a new growing one. Think about how ride-hailing apps like Lyft and Uber and the threat of self-driving cars are reshaping the automotive industry. Car manufactures like GM, Ford and Toyota are forming partnerships or acquiring to gain a stake in the growing driverless car market. Acquiring a company can help you overcome the barriers often associated with breaking into a new market.
- Customers want more – Following the demands of your customers is critical to your company’s long-term success. Acquiring allows you to rapidly fulfill their needs and keep them satisfied so they don’t go to your competitors. For example, in the food and beverage industry, candy companies like Mars and Nestlé are acquiring “healthy” brands to keep up with the growing demand for natural and healthy foods.
In many cases external growth can be used to accelerate your growth and achieve your strategy. Don’t miss out on this opportunity. Learn more about external growth in our upcoming webinar “5 Options for Growth” on January 25.
Date: Thursday, January 25
Time: 1:00 PM EST
CPE credit is available.