Acquisitions can often be seen as the most challenging and the most aggressive strategy to achieve company growth, but when correctly implemented is unrivalled as a way to rapidly expand your business, diversify into new products, services and markets, and drive the bottom line.
There are a high number of sectors where consolidation could bolster organic growth and provide an immediate increase in market share. A consolidation strategy is also very attractive to private equity and growth capital investors, as they look to put substantial capital behind talented management teams with ambitious growth plans in fragmented markets. Several of our recent clients have used acquisitions as a means to accelerate their growth. Fairstone partnered with Synova Capital following their £25m equity investment to pursue a consolidation of the UK’s financial advisory market, and Patrick Parson looks to continue its acquisition of engineering consultancies supported by the recent LDC investment.
Fastflow Group has expanded both its services and geographic cover through the acquisition of social housing maintenance provider DW Support Services in 2014, preparing the ground for the substantial investment from Elysian Capital in 2017, and the business remains focused on making strategic acquisitions. The strategy of growth through acquisition enables businesses to meet their goals, without the need to invest the time and resources required to build up operations from a blank canvas and compete for market share. Furthermore, it allows businesses to access instant revenue streams from existing contracts and customers, whilst benefiting from the efficiencies and synergies that come from operating as a larger group. Identifying the right acquisition target can however often be a case of searching through the proverbial hay stack, and we would always recommend a structured approach to identifying targets starting with a whole-ofmarket view. We are currently working with a number of companies, from local businesses to multi-nationals, assisting with identifying the right acquisition targets to achieve their growth plans.
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