Growth comes in many forms. Having a vision for the company, that is set into a strong strategic plan, with an actionable set of metrics and milestones is a great place to start.
Accretive growth is a very positive way to grow. A company can gain scale, synergies, new products, new markets, new talent that can all come together to facilitate further Organic growth. Done properly, there is a tremendous upside to the top end as well as to the Value of the larger company as a whole.
However, accretive without organic will usually not work. In most circumstances, it fails miserably. Adding scale and having a series of companies that are not synergistic, do not leverage customers, markets or even consolidate to save expenses is a recipe for failure.
You need continuity, ERP systems, synergies and a TEAM. You need to be able to consolidate, integrate and cross leverage people and processes. Buying companies can be sexy, and relatively easy. You can gain scale, but rarely can you gain value. Combining multiple low EBITDA companies does not create scale. It creates a bigger, messier low EBITDA company that still has no vision, nor a strategy.

Scale does not equate to value. #leadership #integration #strategicplanning