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.