When a company loses performance, it is often linked to some form of distraction that caused it to lose focus on the model that led it to thrive and generate value.
Text by Alon Sochaczewski, Founder and CEO of Pipeline Capital.
It could be a new area – distant from its core business, an accelerated geographic expansion beyond what was advisable, or even, surprisingly, an abnormal growth in the customer base leading to chaotic operational growth.
There are thousands of cases, and the journey is always the same: go back, set things straight, focus, and learn from mistakes. Sometimes the mistake is fatal. Other times, it’s quite damaging. The most recent case is Americanas with the experienced investors at 3G Capital.
But this applies to any size of company and also to any individual.
In M&A, we carefully analyze sustainable growth and the focus of both the managers and the company.
Often, these disruptions in very good assets create good buying opportunities. Distressed assets, as they are also known, present good acquisition opportunities.
2 simple tips:
- Maintain focus and grow sustainably. Accelerate when you realize you are in full control of the operation.
- Analyze distressed assets and acquire good assets that have somehow lost control and are advantageous to fix and integrate into your business without losing focus.
Text by Alon Sochaczewski, Founder and CEO at Pipeline Capital.
Originally published on LinkedIn.
Read more articles about M&A:
- What is an M&A process?
- The role of M&A advisory in selling your company
- Digital Transformation: How M&A is guiding traditional companies to innovation
- How can strategic funding boost your business?
- The benefits of selling your business to a larger company
- Using M&A to enter new markets or acquire new technologies
- Risks in M&A: Key risks and how to identify them
- Myths and truths about selling companies
- 5 most common mistakes when selling your company
- 5 common mistakes when selling your company – part 2
- Sell side: Introduction to the world of M&A – By Santiago Vieites
- Efficient prospecting in M&A – By Santiago Nicolás Boher
- Brands and M&A – By Alon Sochaczewski
- M&A market is like a movie – By Alon Sochaczewski
- M&A shows positive trend, which should consolidate – By Alon Sochaczewski
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