The Dangers of Expanding Your Business Through Acquisition
Let’s assume your business doesn’t need any help in scaling up…
…but you’re still considering acquisitions to boost valuation — then beware these three overlooked risks:
🟡 BOTTLENECKS. Unifying every process post-acquisition isn’t always worthwhile. Expect duplicate systems to cause bottlenecks.
🟡 SUPPLIER LOSS. A key vendor relationship in the acquired business may compete with your preferred supplier. You may face tough decisions around non-negotiable contracts.
🟡 LOST TIME. Founders can lose focus during the acquisition process. Like anything, there is an opportunity cost.
Don’t get me wrong — acquisitions can increase valuation.
People talk about the benefits of synergies and scale without the risks.
But awareness of potential downsides means you’re better equipped to mitigate risks.
#ScaleUp #NextLevelGrowth #ExitLaunchpad #M&A #Exit
