The Big Idea. Rather than relying on organic growth, acquire multiple companies to strengthen your business and complement your vision.
The Approach. There are hundreds of service businesses that have reached their proverbial ceiling, without the capability to grow on their own.
To maximize the value of your business, and to support your growth expansion strategy, acquisition to strengthen your capabilities and profitability is a great tool known as buyside corporate development.
Buyside M&A acquisition benefits include:
- Whether M&A is used to enter a new geographic location, strengthen your product/service offerings, or build scale; acquisition strategies are an option to expand when your organic growth is limited to single digits. Plus, M&A boosts internal capabilities and competencies beyond geographic and market expansion. M&A is best used to create market leaders.
When should you consider corporate development?
- Organic growth is limited to single digits
- Cost of customer acquisition is greater than the competition
- Cost of customer acquisition is greater than $1 to $1
- Gap in team
- Gap in portfolio
- Opportunity for expansion, but limited team and resources
About the Approach Methodology. Our process was developed and refined over the past decade to provide technology enabled service businesses the specific expertise and methodology exclusively focused on growth through alliance, acquisition, and portfolio and distribution expansion. Our methodology combines a precise and highly focused approach, delivered with deep industry expertise, resulting in the achievement of the corporate development objectives of our client company. Our approach ensures acquisitions are accretive to valuations and realize the necessary timelines and results. Our primary differentiation is that we are exclusively focused on the midmarket within a few select industries and we take a proactive approach to the acquisition of multiple companies in order to create a market leader.
The Results. We GUARANTEE a 3X return.
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While cost of customer acquisition varies by industry, ERGO's buyside sourcing approach to M&A acquisitions acquires revenues that payback a 3X return.
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While your team remains focused on running the business, complement your business with value-added strategic acquisitions. Rather than being distracted by the daily grind of evaluating an acquisition, your team becomes involved only when discussions have matured and the deal has reached the due diligence and integration stage. We ensure you make the right acquisitions to create value.
- ERGO creates opportunities instead of waiting for opportunities to appear. The ERGO origination approach allows us to proactively co-create companies and opportunities.