The business brokers and business intermediaries we speak to explain to us that they have two groups of companies - 1)  businesses that are seeing a downturn in their earnings, and are seeking ways to increase revenue, and 2) businesses that are stable, but seeking to get out and having problems finding buyers.

If you are seeking to increase revenue and earnings, there are obvious ways.  Increasing your geographic reach, diversifying your product line, new sales/marketing initiatives, etc.  Beyond these "organic" methods, there is another option that may prove to be more successful, acquisitions.  The decision is historically called a grow vs. buy decision.

The solution to the companies who are seeking an exit in the marketplace is the first type of company mentioned above, or the companies seeking to increase earnings.  There are not many ways to quickly increase earnings for most companies.  If you are a company, and experiencing a decline in your earnings, one way to try and increase your earnings is through an acquisition of another company.  Even if your business is not flush with resources right now, there are many deals getting done in creative ways that do not need a lot of cash down.

from "The Balanced Scorecard"

"Organic growth and growth by acquisition should be complementary strategies. The successful execution of both depends on aligning everyone and everything around a single set of corporate goals, and so achieving these goals faster, better, and cheaper. "

In other words, if your company is seeking growth, no matter what the market, you should be looking at organic and acquisition growth strategies.

If you are a business for sale, or a business owner seeking an exit strategy, you should be marketing yourself to companies seeking growth by giving them positive growth to their revenue.

Princeton Capital Strategies

www.PrincetonCaptialllc.com

Value Beyond a typical Business Broker