EXPAND your business
If you use a Build-to-Grow strategy your intent is to expand your company continue as a stand-alone entity; sometimes over several family generations. You can build your company organically from within, or you can use one or several strategic transaction types to advance your business. Especially when it comes to international expansion many companies use alliances, or at least some form of simple distribution arrangement. Depending on your specific situation all strategic transaction types can help you to grow your company faster and with lower risk, when managed properly.
Main strategic transaction types
The acquisition of another entity is generally the most complex transaction endeavor a company can engage in. According to a Harvard Business Review article from June 2016 typically 70-90% of acquisitions are abysmal failures. Getting an acquisition right is indeed not a short term job. It requires solid preparation and a sound integration process after the deal has completed. While the very common alliances and licensing deals might be less likely to be failures, they often underperform significantly.
Supporting strategic transaction types
In some cases it makes sense to spin-off a certain business element. A spin-off can help to shield your company from additional risk and optimize the overall value of your empire. Sometimes, it also makes sense to divest of a certain business unit in order to regain focus of the overall company (spin-offs can help as vehicles to sell a certain portion of your business).
Globalator services offered
Globalator clients for Build-to-Grow engagements are owners of small to medium sized companies that have been established at a certain level, but also large public companies that are interested in transactions with smaller entities.
With smaller companies we generally join on the board level in a fractional management role and take responsibility for the overall growth of the business with strategic transactions. Strategic transactions done right can add tremendous value to the company. Depending on the size of the organization and the team available Globalator might take a more detailed role for certain transactions. Especially when it comes to acquisitions we may take full responsibility of such a project. Especially during the initial engagement we offer the option to be the sparring partner of your executive team. This allows both sides to get to know each other and develop a necessary trust relationship.
We would be happy to discuss with you the best strategy for the future of your business and determine if Globalator can play a role in that. You will find that our approach can also add value to you.