In the Ready Set Grow article series, we take you into the starting blocks. The race into foreign parts. In the first article, Ready to Grow, you learn what to take into account in doing business abroad. This time, we will be zooming in on one of the most common cross-border acquisition strategies: the buy-and-build strategy.
Cross-border business acquisition
More and more, international transactions are the rule, rather than the exception. In approximately 70% of the deals we close, we target foreign as well as domestic candidates. If you choose to do business abroad, it is important to do some proper research. Study local laws and regulations, and cultural differences for instance, but make sure to acquaint yourself with macro-economic trends and developments as well. A solid orientation is the basis: are you ready to venture across the border?
The buy-and-build strategy is a common way to achieve international growth. This strategy encompasses growing your business by acquiring one or more businesses. Our objective is a cooperation that will benefit all parties involved. Ideally, the result is a new, stronger, more versatile and profitable company.
New markets and local market knowledge
Firstly, it is relevant to look at local laws and regulations when it comes to buying and selling companies. Each country also has its own tax regulations. These regulations must be considered before a transaction is completed; this way you can make the acquisition a success.
Focus areas in an international buy-and-build process
For you as an entrepreneur, achieving international growth by means of buy-and-build is interesting if your company has a scalable business model, is active in a fragmented sector or has performed stably for multiple years. Potential acquisition candidates should match your company culture to make the buy-and-build strategy a success. In addition, it is worth recognising cultural differences between countries. Taking note of these differences and acting accordingly increase your chances of a great international transaction.
Marktlink helps you set out the right strategy
Whether you actively pursue international growth, or whether it crosses your path by chance, Marktlink is the go-to adviser for optimal guidance throughout the full process. We know the international market, we have access to local networks thanks to our active and prominent role in Geneva Capital Group , and have a database of over 60,000 active buyers and sellers. With nine branches in five European countries, we have local M&A specialists everywhere. They speak the language, know the culture and maintain contacts with a large number of international investment firms and providers of tax and legal services.
At Marktlink, we put a great deal of time into mapping out the market and maintaining relationships with entrepreneurs. Due to our personal involvement, even beyond the acquisition process, we always present candidates you may not have had your sights on yourself. Our involved and professional M&A specialists will be by your side throughout the process. Together with you, we achieve your international growth ambitions.
Go and grow
After you have done your research and have a detailed image of the company you want to acquire, the time has come to think about financing. Arranging bank financing is not as easy as it used to be, but then again, investment firms are more than interested in international business acquisitions. And there are other financing options we will gladly explain. In the last article in this series, we will show you what your options are to find financial support for your international growth ambitions.
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In the next article, we focus more on expanding abroad. From ‘Ready’ to ‘Set to grow’. We will talk about different forms of financing and acquisition strategies. Do you want to be the first one to read the next article? Leave your email address to stay informed.