In acquisition entrepreneurship, an acquisition growth strategy uses acquisitions as a way to fuel and accelerate business growth.
In this episode, Parham Parastaran returns to Beyond 8 Figures to talk about acquisition entrepreneurship, shifting focus, and his philanthropic work. Since his last visit, Parham exited his business for over $10M and now independently acquires mom-and-pop automotive stores. He’s also an advocate for entrepreneurs’ mental health.
About Parham Parastaran:
Parham Parastaran is an entrepreneur, philanthropist, and author who focuses on mental efficacy in the business community. His life was not always smooth sailing, but he managed to turn it into bigger better opportunities.
What is Acquisition Growth Strategy?
It includes looking and purchasing other businesses to increase market share, to have access to new markets, acquire new competencies, or accomplish strategic goals.
A typical phase in the acquisition growth plan is to identify targets that complement the goals of the purchasing organization. This could entail looking for companies that can improve the current operations, solve product or service gaps, give access to new market segments, or provide synergistic benefits.
However, pursuing an acquisition growth plan has risks and challenges. Integrating multiple corporate cultures, processes, and practices may be challenging. The purchasing organization must conduct a due diligence to assess the target firm’s financial stability, potential risks, and suitability. Funding the acquisition and managing the associated expenses and risks also require careful planning and execution.
In general, if performed appropriately, an acquisition growth plan can be a useful tool for accelerating business growth and creating value.
Episode highlights:
- Parham Parastaran admits that as an entrepreneur you should use various channels to acquire a business. Sometimes you might know someone in a particular area, or use word of mouth and finally, you can apply to brokers. [17:10]
- Sometimes on your entrepreneurial journey, you need a clean slate. When you look back and see a lot of mistakes, you can use it as experience for your current business or future plans in order to rectify them, avoid making the same mistakes and have a clear picture of what you want. [22:36]
- Parham believes that you should not limit your achievements because it blocks you from learning and achieving even more. As soon as you think you have done well enough, you stop. Try to distance yourself from time to time to see if you can improve. [33:10]
- On your business journey be ready to become successful and dream big. At some point, you might feel guilty because of the success you gain. Don’t let it distract you from your goals and make you think less of yourself. [38:09]
- Parham suggests using technology to accelerate processes in your business. [42:38]
Parham Parastaran’s advice for entrepreneurs:
Whatever you do is not your label, not your identity. People tend to think of themselves in some way in terms of the occupation they perform. If you try to think about yourself from various angles “you will have a much better picture if you really like yourself and where you are going.”
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