Propelling Performance Podcast
Episode – Seven
Growth through strategic acquisition
featuring Rob Nankervis with Warren Otter
Warren Otter is the founder of Otter and Associates, a boutique Business Growth Advisory firm that helps guide SME businesses to grow profitably and increase business wealth, in a short period of time, reducing their stress and improving their lifestyle. In this episode Warren shares insights into the advantages of a strategic acquisition, exploring key points for businesses looking to grow and how to evaluate and maximise opportunities.
“I look at this point of view… what is the owner’s strategy for the next five or 10 years? That’s why I’ve always termed this strategic acquisitions. It’s not just business acquisitions. You can’t ignore good opportunities that come your way. And if a business owner has a really strong business plan, it’s a lot easier to work out the types of acquisitions they want, strategically.” – Warren Otter
Listen to discover:
• The fears that hold businesses back from acquisitions
• The advantage of buying the strategic position a business holds in the marketplace
• Why it’s important to look further than your own accountant for advice
• Warren’s definition of ‘a safe acquisition’
• The widening gap between sellers and buyers in the market and the new opportunities for sale
• Why businesses must be really clear on their core strengths and skills
• Four tips for evaluating acquisition opportunities
o Investigate density of client base
o Assess and lock in key staff and selling owner
o Get external assistance for due diligence
o Consider special circumstances such as licencing
• Who to have on your due diligence team
• Negotiating ‘go and no go’ terms
• The advantages of appointing a buyer’s advocate
“The safest acquisition is when you’re buying someone who’s doing virtually the same thing you’re doing and you’re buying more market share. You’re not having to go into a new market, you’re not having to go into a new product range… you’re basically buying other clients.” – Warren Otter
– Listen to Warren’s real-life case study of how Otter and Associates guided an engineering company from a $2.4 million to $4 million enterprise value through one small acquisition, buying only what they needed.
– You can try growth the old, hard way – or double, even triple your value in a fairly short period of time through strategic acquisition. Which would you choose?
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Founder, Otter and Associates
Rob Nankervis – Podcast guests – Season 1
Warren Otter is the founder of Otter & Associates, a boutique Business Growth Advisory firm that helps guide SME businesses to grow profitably and increase business wealth. A private business owner for more than 26 years, Warren grew his family business in the manufacturing sector from $4.5m to $25m in the mid 2000s and now shares the same growth solution with other mid-size private firms. His book, Crank It UP; the proven way to drive your business to greater wealth, helps demystify the issues around business growth via strategic acquisitions for business owners.