Acquisitions for
Strategic Growth

The global COVID-19 pandemic has affected almost every business in the world

By STS Captial

The global COVID-19 pandemic has affected almost every business in the world, but it isn’t all bad news. What strategies business owners continue to make over the coming months will help them emerge stronger and make them even more valuable to strategic buyers in the long term. Here’s our advice on how entrepreneurial business owners can play offensive to ensure they capitalize on the coming M&A opportunities.

Prepare for economic recovery

Even though a large amount of uncertainty remains surrounding the virus, green shots of recovery are reported in most economies around the world as businesses emerge from lockdown. The International Monetary Fund expects the global economy to grow by 5.4% in 2021, a positive sign following a 4.9% drop in 2020. Take the time now to improve operations, reduce redundancies and put the proper people in place so you’re prepared for growth when the time comes.

Redefine your strengths

Smart business owners are taking steps to redefine their capabilities and strengthen their businesses. Almost overnight, businesses had to embark on digital transformation journeys. From enabling employees to work from home to standing up digital service offerings. It’s innovative actions like these that add new value to an organization, value that strategic buyers will appreciate and pay more for in the future. Whether its redefining supply chains and operating models or creating processes that improve efficiencies. These factors will all add value to your organization in the eyes of strategic buyers.

Adapt and adjust

Consumer behaviour has changed virtually overnight and it’s likely to stay this way post pandemic. The shift to online shopping has accelerated further and is likely to continue with less people visiting bricks and mortar stores. Any business that wants to remain successful will need to continue to adapt and adjust to their changing customers needs and behaviours. It will be one of the first things strategic buyers look for when acquiring a new business, how agile is the organization and can the organization flex with changing market dynamics.

Build strong customer relationships

Businesses can prepare for recovery by investing in their brand, marketing, and sales activities so they remain top of mind with customers. Pro-actively reaching out to customers and building a strong relationship will ensure they think of you first when the time is right. Again, it’s this type of activity that strengthens your organization, making it more valuable to strategic buyers.

Learn your integrated value

It’s inevitable that some strategic buyers have put their plans on hold for the time being, but there are still opportunities to sell if you are well-prepared and know your integrated value. Our Selling to Strategics process will help you understand the strategic and competitive drivers within your business that will maximize value to strategic buyers.

If you would like to know more about how we can help you maximize value when selling your business to strategic buyers, then contact us today for an initial consultation.

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