Acquiring a company or asset can be exhilarating, but you can still trap yourself in managing a business that you don’t enjoy working in or working on.
The big question remains, how do you decide what type of business to acquire next?
Typically, a good deal for you will revolve around your interests or have synergies with the rest of your portfolio or skills. Here are a few effective strategies to help you set your criteria.
What Do You Do On Your Free Time?
Acquiring around your hobbies is a no-brainer since they usually give you energy. You can also track your time for a month and see what you spend the most time on.
Overlapping Customer Avatar
If you already have a business or book of business (salespeople!) what else do they regularly need, or what else can you sell them as an upsell, downsell, or crosssell based on their avatar’s profile?
Overlapping Sales Process
What other business can you bolt onto your sales team with little to no changes?
Point Of Purchase
When a customer pays you, what else do they buy? Or what triggered the purchase, what are they going to buy because of that, and in what order?
Look at your income statement and balance sheet. Find your biggest expenses and see if you can acquire them.
We get a 10% profit interest from anything made off of this list! Haha, we were being facetious.
Hopefully, you can find some low-hanging fruit with this list, comment on your finds, and share it with someone else that could benefit from it.
ASE is your personal board of directors, so make sure to leverage the rest of our resources section.
Especially our Pre-LOI checklist it’s an ASE Fleet and customer favorite!