Are you an entrepreneur seeking growth for your business? If so, have you considered business acquisition as a key strategy?
According to a recent study by the BDC, business acquisition can be a growth-bearing strategy. But to take the plunge, you need to be ready to take action and invest time and effort.
Browsing ads on websites such as CTEQ may seem like a first step. However, passively waiting for the perfect opportunity without intensive search effort is akin to relying on luck. According to the same BDC study, only 2% of sellers approach buyers directly and only a quarter use electronic platforms to display their intentions. This means that the majority of opportunities remain hidden and require an active and committed approach.
Why is this dynamism so important? Let’s take the example of the entrepreneur population. More than 12% of them are 65 or older. A quarter of Canadian entrepreneurs plan to sell or close their business in the next five years, a proportion that climbs to 50% among entrepreneurs age 65 and older. This potentially represents 116,000 businesses for sale across the country over the next five years. This is where your active engagement comes into play.
It’s clear that the time needed for an intensive search can seem daunting. However, investing time and effort can be highly profitable in the long run. Moreover, experts such as business transaction advisors can facilitate this approach. They can initiate strategic discussions, manage potential obstacles, and help devise a transition plan that could make the project interesting for both parties, even if the acquisition target is not ready to give up their business immediately.
In short, to succeed in a business acquisition, it’s not enough to wait for opportunities to present themselves. You need to adopt a committed, strategic approach and, if necessary, delegate to professionals when time you are short on time. It’s this commitment that could make the difference between stagnation and growth.
Are you looking to grow through acquisition? Don’t stay passive. Take action!