Growing your business: Organically or through acquisition?

Every company wants to grow, right? Well, in many cases, yes, but have business owners had time to think about the best way to grow, the difference between growing organically or through acquisition, or the impact that which you choose can have on your business’ future?   

Remember that every business is different. Each has different weaknesses and opportunities, these can relate to the sector it trades in, the size of the business, location, timing and many other factors.  

Organic Growth

Organic growth can present the lowest risk as it relies heavily on the overall market’s growth and can be the most natural and progressive way to grow offering more control over how the growth happens. It can be more predictable and manageable and often creates a sense of pride and accomplishment in growing a business from scratch.   

Disadvantages include possible setbacks as growing organically is naturally slower and it may take years to get to the desired point but offers a more security and less surprises along the way.   

Acquisition Growth

Acquisition growth can help businesses looking to move quickly. Businesses can target others to purchase and helps them to grow quickly. So, if I decide to secure finance and expand, what are the main advantages of acquiring a fully functioning business?

• Faster growth
• Absorbing a business’ reputation, which can be a valuable asset that helps with brand awareness
• A boost in your market presence and reduced competition (if you acquired your competitor)
• Significant immediate financial gains if the other business is already making profits  

Disadvantages include delays and extra unexpected costs, as well as the time it takes to absorb a new business.

How can ASC Help?

Henry Ejdelbaum, MD of ASC Finance for Business, comments “business is personal and that’s how we deal with it. Depending on whether you want to expand your business or purchase another one through acquisition, you will need to consider different things. A good broker should be able to think about what you need and obtain sensible commercial loan terms to match. Securing finance is a bespoke process, so there needs to be more work put into it, and this is where ASC can help to secure the right deal, so your business can flourish.”  

To help your business expand and remove the hassle of securing finance, get in touch with your local ASC office as we can support your financial applications.

Blog by ASC Finance for Business

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