Should you acquire a company or develop your own solution? This is a question many leaders wrestle with when considering the best path forward for their company; however, there’s no one answer since every company’s situation is unique and each approach has its advantages and disadvantages. Let’s take a moment to explore these two pathways in more detail.
Building Your Own Solution
When it comes to growth, most are familiar with organic growth, which is growth through adding more customers, selling more products, investing in research and development, or developing your own solutions. At its heart, organic growth is business as usual and is a vital part of a company’s success. Organic growth tactics can be used to accelerate an organization’s development, and there are many benefits to this approach:
- Familiarity — Most business leaders are more comfortable with the concept of building a solution internally than with pursuing an acquisition. Already having an understanding and experience of undertaking the task internally makes it easier to embark on this path.
- Fully customizable — Developing your own solution means you have total control and can fully customize it to your specifications. Building a solution is especially beneficial when no other company exists that suits your strategic needs. Click to continue reading on The M&A Growth Bulletin.
This article originally appeared in The M&A Growth Bulletin, Capstone’s quarterly newsletter that delivers essential guidance on growth through M&A along with tips and tactics drawn directly from successful transactions completed in the market. Subscribe today to read the current edition and receive The M&A Growth Bulletin every quarter.