Growth vs. Value

We live in a business world where growth is worshipped. Entrepreneurs measure themselves by how many people they employ. Many founders dream about making lists whose sole criterion is revenue growth.

However, if your endgame is to sell your business to a strategic acquirer one day, indiscriminate revenue growth may not result in a commensurate spike in your company’s value; in some cases, it may even detract from it.

1. Strategic Buyers Value What They Cannot Replace
2. Private Equity and Strategic Acquirers See Things Differently.

The typical strategic acquirer is much larger and better resourced than the companies they target. They don’t need you to diversify for them. Instead, they want the company that has the one puzzle piece they want, and the less diversified that offering is, the higher the premium they’re prepared to pay.

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Franne McNeal, MBA Significant Business Results, LLC Significant GPS Small Business Growth Services

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