Why Does Your Business Get Acquired?
Written for the marketing industry, the original title of this article by David Rodnitzky is Selling your (marketing) agency, a how-to guide, Part 2: Why do agencies get acquired?
But it is just as valid for businesses in any industry.
David explains what attributes are most attractive to investors and focuses, in this issue, on Revenue, Geography. Unique Services or Technology and Client Base.
A few months ago, I created a list of every search engine marketing agency with at least 10 employees in the US. You can view it here; there are over 100 agencies on the list.
You’ll notice that more than 80 percent of the agencies listed are independent. To be clear, many agencies have no intention of ever being acquired, so being independent doesn’t mean you aren’t acquirable. Still, many of these firms would be open to acquisition, so the question emerges: Why do some get bought and others passed over? Read the article.
In a related article today, Steve Sprindis of Waypoint Private Capital, Inc., explains why Successful Exits Don’t Just Happen, They Need To Be Pursued.
I’m going to let you in on a little secret. You’re not the only business owner who doesn’t understand how to sell his company. Actually, most business owners have never sold a company and wouldn’t know where to start. That’s completely understandable. You have spent your career developing great expertise in manufacturing and selling engine parts, or in software development, or whatever it is that your business does. But that shouldn’t dissuade you from selling your company when the time is right … Successful Exits Don’t Just Happen, They Need To Be Pursued.