Welcome to Growthink’s 4th Quarter 2023 Newsletter. Below we will share:
- CEO Jay Turo’s video thoughts as to how thoughtful business leaders can pursue and win new opportunities in the current market environment.
- Chief Client Officer Anna Vitale’s on notable Growthink IMPACT Advisory Engagements
- Growthink Head of London Office Antonio Barzagli on the power of Add-On Acquisitions for Small Businesses
- Entrepreneurial Advisory Practice Lead Bert Carder on what owners should be thinking about as they plan ahead for 2024.
Chief Client Officer Anna Vitale’s on Key Growthink IMPACT Engagements
We are proud to be a catalyst for some of the most groundbreaking ventures across various industries. Our clients are not just meeting the status quo; they are redefining it. We have been honored over the last quarter to work closely with the following teams:
- A suite of cutting-edge diagnostics and longevity medicine clinics, founded and spearheaded by globally acclaimed entrepreneurs, is not only expanding its physical footprint but also pioneering the rollout of democratized healthcare programs and software solutions. These innovative offerings are designed to detect life-threatening conditions more rapidly and accurately than conventional diagnostic methods.
- A venerable 90-year-old collections firm is taking a bold step into the future by allocating significant capital and human resources to develop AI-driven strategies. This forward-thinking commitment uniquely positions the firm as one of the few trailblazers in its industry to make substantial AI investment.
- After securing seed financing, a digital fan engagement platform launched in early October to overwhelming acclaim. Committed to revolutionizing the way fans interact with celebrities, the company has received phenomenal initial feedback, setting a new standard in fan engagement.
Growthink Head of London Office Antonio Barzagli on How Add-Ons Can Be A Timely Exit Path For Smaller Businesses
For smaller businesses seeking an exit strategy, add-on acquisitions facilitated by Portfolio Companies (PortCos) of Private Equity groups (PEs) offer a compelling route. These transactions involve integrating a smaller enterprise into a larger, existing portfolio company, leveraging synergies to amplify growth and value creation.
A prerequisite for a company to qualify as a viable add-on target typically involves a minimum Operating Profit or EBITDA of $1-2 million, ensuring a solid foundation for further expansion.Targets for add-on acquisitions become more attractive when they demonstrate substantial synergies with the PortCos, irrespective of their size.
This could manifest in various forms, such as possessing a more advanced or complementary technology, a well-established distribution network in a new market, or robust relationships within the supply chain. These synergistic qualities not only enhance the intrinsic value of the target business but also contribute to significant operational efficiencies.
In addition to US companies, European and international companies at large have become attractive targets for many US funds. This strategic emphasis stems from their global mandates, recognizing the diverse and dynamic opportunities outside traditional American markets.
Generally, add-ons acquisitions are especially pertinent in the current market landscape, where avenues for organic growth are constrained, making inorganic expansion through such acquisitions a particularly timely and strategic approach.
If your company aligns with the profile described above, get in touch. We have active relationships with hundreds of motivated PEs eager for strategic acquisitions in specific verticals.
Entrepreneurial Advisory Practice Lead Bert Carder on What Business Owners Should be Thinking About as They Plan for 2024
As Growthink’s Entrepreneurial Advisory Practice Lead, I have the very good fortune to connect with some of the most dynamic startup and small business owners and entrepreneurs in the world. Here is what they are thinking about now / the key business questions they need to ask to ensure success and grow in the years to come.
1. Evolving Work Expectations. People want more flexibility with their schedules, to work from home, to get paid for the results they produce not the hours they work, etc. How can you adapt new policies and strategies next year to attract retain, and get the absolute best work from your business talent?
2. Outsourcing. Businesses are using outsourcing of small tasks or positions to lower their costs and increase adaptability. If you have not already, when is the right time for your business to do this?
3. Artificial Intelligence. AI automation, and software solutions are impacting every business in every sector. What, where, how, and when should you be implementing and leveraging AI in your business?
Growthink has a team of business experts who can work alongside you to develop strategies and solutions to address these type of challenges and more. Contact us to schedule a complimentary discovery call.
