Login | Join Network
Lost Password

A password will be emailed to you.

Business Acquisition

Acquisition means taking ownership of another business. This is a faster means to scale your business. Growth of a business from one level to another depends on various factors, more importantly time and economy. By acquiring a company you are in the advantage because the acquired company has a readymade position in the market. The entrepreneur need not build the company from scratch which is much lengthier process.

The initial business plan must have well defined strategy that set out the growth of the company clearly. The organic growth of a business is a slower process in comparison to inorganic growth by business acquisition. The internal growth process of the business might take up more time and investment. Acquisition will lead you to the objective faster.

In an article for Gaebler Ventures, Gregory Steffens says “a company must be sure that acquisition will contribute more value to the firm than the premium will cost. If this synergy value is not at least as much as the premium costs, then the firm should not participate in the acquisition.”

It is important for the buying company to be sure of how the acquired company will add value and bring about more revenue after acquisition. Once the company is acquired steps need to be taken to maintain the culture of the acquired company and ensure employee satisfaction.

  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks
  • LinkedIn
  • PDF
  • RSS
  • email

More on Entrepreneur21.net:

Fundamentals of Marketing Basics part 2
Key marketing terms and concepts
Estimate your Business Start Up Costs
Entrepreneurs usually underestimate how much money...
Outsource Product Development
Outsource product development has caught the imagi...
Know All About Entrepreneur Intellectual Property
Every creative idea, strategy or design is an indi...
Customer Service Tips
Customer Service is the essential part of a busine...
Dr. Finian Tan, Chairman Vickers Capital Group
Dr. Finian Tan is the key Principal and Chairman...

Leave a comment

Disclaimer: All pages within GenMembers network are expressions of the opinions of the site operator only, and no representation of factual accuracy is being made. The content is intended to create interest in various topics for our readers, who are in turn encouraged to conduct their own independent research. This site is not related to: Entrepreneur Media, Entrepreneur Magazine, Entrepreneur of the Year, Entrepreneur's Partner, Hispanic Entrepreneur, Entrepreneur.com, Entrepreneurs.com Entrepreneur's Only, The Entrepreneur's Source, Entrepreneur's Notebook or any of the many companies that use the word entrepreneur in there trade name. Please see our website Terms of Use for further information concerning your use of the site.