The Most Costly Deal is the One that Drags On and On

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Even with all of the information available on line, physical presence and being accessible still matter for most service firms. So you’ve concluded that your service firm should expand and become a regional entity with multiple offices.  Should you invest in executive talent for your headquarters and send your sales-oriented employees out into the field to attract new regional accounts? Should you leave your headquarters alone and recruit/hire branch managers who would then hire their own teams?  Should you consider equity deals or franchising to attract more entrepreneurial leaders for the new offices? Should you strike a series of strategic alliances deals with complementary companies that already have visibility in your desired expansion area(s)?  Or should you acquire competitors?

If you got tired just reading that paragraph, slow down and DO NOT start exploring which types of deals will be involved. There are great resources available to help you with the structure and logistics of various deals, but they only pay off once you are centered.

You probably need a bit more market research about the region.  What is the size of that market…REALLY? Who are your best prospects? Where do they live?  What do they read, listen to, and join? Whose advice do they take? Which firms are they currently utilizing? What is the difference between the results your firm achieves? Do you know for sure that the region NEEDS what you have to offer? What is your window of opportunity? How quickly should your expansion be accomplished?

You may end up with a combination of organic growth, acquisitions and equity deals. The best part is…you’ll know why.

Make sure you are good at market research and analysis before you lose yourself in deal making.  My 30+ years has taught me that the negotiation of deals between people who are not centered leads to indecision so the process drags on and on and on.  And those are the most expensive deals.

About Aldonna Ambler:
Known as The Growth Strategist®, Aldonna Ambler built and grew a suite of companies to help midsized B2B companies achieve accelerated growth with sustained profitability® A Certified Speaking Professional (CSP), Ambler has addressed over 2000 audiences and hosted a syndicated online talk show about growth strategies for 9 years. As a growth financing intermediary, Ambler raised over $1 Bil dollars for midsized companies. The winner of over 2 dozen prestigious national and statewide "entrepreneur of the year" awards, Ambler is available to speak about “profitable growth during any economy” and/or serve on the board of a growth-oriented privately-held company.

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