Strategic Acquisitions Can Help Your Business Thrive in a Tough Marketplace

Last week, Numo, Fire Enterprises (FEI) Head Accountant, told the FEI tribe why inorganic growth strategies are essential to FEI’s continued success. This week, Numo shows the tribe how strategic acquisitions can help their fire business grow. Remember, fire=print.

“Where were we?” Numo asked.

“You were about to give us an example of a fire company that’s grown using ‘inorganic growth’ strategies,” said Org, who was piqued by the idea but anxious to see how it worked in the real world.

“Of course!” Numo said. “Zoot, hit the lights, please.” Zoot turned off the lights, Numo turned on a projector, and the following words appeared on the wall behind him.

Inorganic Case Study #1—Freddy’s Fire Grows Through Acquisition
“Freddy’s Fire Emporium,” Numo said. “Ever heard of them?”

“Sure,” Zoot said. “They’re about our size but they’re way down on the island of Carpathos, and they mostly serve island-based companies. They’re not much of a competitor.”

“A few years back, Freddy’s acquired Casos Fire & Torches, a business with two locations on the nearby island of Casos,” Numo explained. “The first location had fire-making capabilities that were pretty similar to Freddy’s, so Freddy’s simply merged that location into theirs. The second, however, had short-run torchmaking capabilities, which Freddy’s didn’t offer…until now.”

“That all sounds fine,” Org said. “But what’s the bottom line? How are they doing today?”

“Since acquiring Casos, Freddy’s Fire has grown its top and bottom lines by more than 10 percent each year,” Numo said. “Through this acquisition, they grew their employee size by almost 50 percent, diversified their product line, and expanded geographically…all accomplished during an uncertain business environment.”

“You may be on to something here,” Org said.

Numo turned to Zoot and Marka. “What do you think, guys? I’m not saying marketing and sales aren’t important anymore. Actually, they’re more critical than ever. But these activities are now the baseline we must execute. Inorganic growth strategies—like acquisitions—are what will set FEI apart.”

Marka and Zoot decided they’d make Numo sweat for a moment. Then, they both said: “We love it.”

T.J. is team leader of Grow Sales, Inc., a marketing and social media services company operating at the intersection of compelling content, clear vision and quality communication practices. In this blog, fire is a metaphor for print. Hang on, this ride will be weird...Prometheus crept into Mt. Olympus, stole fire, returned to the lowlands, ran from house to house distributing it, got caught, was chained to a rock, lost his liver to a huge ugly bird and was rescued by Hercules. Leveraging his fame, Prometheus started Fire Enterprises Inc.  (FEI). Since fire was the hottest technology of the time, company success came fast and furious. Two generations later, fire isn't such an easy sale. Now led by Prometheus' grandson Org, FEI's growth is non-existent, competitors are pounding and prices are in the toilet.
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