Buy The Size You’re Looking For
Agencies have three ways to grow. First, by competing for new business which can be slow but steady. The second way is to grow organically by winning more business from existing accounts. This way is very profitable but usually not dramatic. Or, the third way, you can buy the size you want, often in a very efficient cross-town merger.
But this option is often over-looked by many agency owners who forget that a merger allows you to acquire the size you want right away with slogging through the new business wars. And that immediately opens up more accounts you can now compete for because of your new size and mass.
The problem is that most agency owners have had little M&A experience and their first attempts at trying to do it alone waste a lot of time and money. More importantly these attempts often cause great opportunities to pass on by because of fumbles, delays and inexperience.
Jump to The Size You’re Looking For
And the first place to look is across town. Few agency owners realize the potential for growth that exists almost next door. And for an agency making their first acquisition, a cross-town merger is the least risky. It’s much more profitable than an out-of-town acquisition that adds management stress and un-reimbursed travel expenses right away.
So consider a cross-town merger as a key growth options. As you can see in the following list, there are some powerful reasons why such a step makes such good sense.
12 Reasons why a Cross-town Merger accelerates your firm’s growth:
- You immediately get bigger
- The scale of the growth can be substantial all at once—for example, double your size
- A number of new accounts are added at one time in many different categories adding diversity, heft, and mass.
- You add senior management, often with subsidized compensation
- You get positive press coverage that shows your aggressiveness
- You energize your staff
- You add services you are now buying from someone else (increase Gross Income and cut out free-lance expenses for example)
- You can ‘buy’ an account you really want
- You stabilize an account you have by adding more resources
- You can change the dynamics of things around your place and begin moving in a new direction.
- Buying growth may be the most efficient way to grow
- You can grow with little cash outlay if you purchase correctly
Sanders Consulting Group has designed a straightforward methodology that produces results for firms that want to grow by acquisition. It outlines the acquisition process from step one, initial strategy to final announcement, step seven.
Most importantly, there are no balloon fees upon closing. Sanders Consulting offers owners the option of using this simple, step-by-step procedure that gives agency management control over their costs and process.
But acquisition of another firm is just one side of things. Your firm might be in position to be acquired. Here there’s no need for a search but there is a need to help you maximize all the financial rewards you’ve earned.
This support might involve a number of issues where we act as your corner man in the acquisition fight, helping to advise you by enhancing your brand, recasting your financials, working with you to set the pricing, helping with negotiation, developing an acquisition strategy, and much much more.
Call Stuart Sanders in confidence or drop him an e-mail
- Office: 800/899.1538
- Canada and Overseas: 561/752-2977