When you have five businesses but none grows
And you want to make acquisitions without having grown what you have
When you have five businesses but none grows
And you want to make acquisitions without having grown what you have
Do you recognize this situation?- Five different businesses in one company
- Stuck for three years, same revenue
- You want to buy other companies to grow
- But collaborators don't take responsibility
- And the fear is: business continuity in medium-long term
The trap
There's a type of entrepreneur who built something.
Five businesses.
Forty people.
Significant revenue.
No debt.
For three years.
Same revenue.
Same structure.
And when you think about future:
Fear.
Not imminent failure.
But progressive irrelevance.
In five years, ten years:
Will this company still exist?
Or will it have been eaten by market?
And the solution you see is:
We buy another company.
So we grow.
So we become stronger.
But the problem isn't that you haven't bought.
Why it happens
Five businesses aren't strategy.
They're opportunities.
First one.
Then another.
Then another.
Management software.
IT systems.
Print and copy.
Restaurant registers.
Office furniture.
Every time: "This is an opportunity."
Never: "This creates synergies with what we have."
And so you end up with five businesses that don't talk.
Software client ≠ furniture client.
Register sales ≠ printing sales.
Fifty hours a week.
Coordinating everything.
But nothing grows.
And collaborators?
Don't take responsibility.
Don't decide.
Don't see numbers.
Because you manage everything.
You want to make acquisitions?
But how do you integrate another company:
If you haven't even integrated your five?
The method
Focus instead of accumulation.- Ruthless audit (which business has future)
Five businesses.
Which have margins?
Which grow?
Which have future in ten years?
Probably:
Two or three yes.
Two or three no.
- Exit or spin-off commodity businesses
Office furniture: low margins, no synergy.
Printing: commodity.
Options:
Sell.
Spin-off.
Close.
From five businesses to three core.
Concentration = focus.- Integrated client strategy
Three core businesses that talk.
Industrial client:
Buys management software.
Buys IT security.
Has company cafeteria → buys registers.
No longer five separate businesses.
But unique integrated proposition.
Finally: synergy.
- Collaborator empowerment
Three Business Unit Managers.
One per core business.
Own P&L.
Own objectives.
Bonus on results.
Weekly dashboard.
They see numbers.
They decide commercial actions.
You: from operational to CEO.
Team that decides instead of executes.- M&A after (not before)
Year 1: focus on core, exit the rest, integrated strategy.
Year 2: organic growth, empowered team.
Year 3: NOW acquisitions.
With solid base.
With clear strategy.
With ready team.
What changes after
You no longer have five dispersed businesses.
But three synergic core.
Integrated proposition.
Client who buys everything.
Client strategy finally exists.
Clear go-to-market.
Defined ideal client.
Empowered collaborators.
They make decisions.
They see numbers.
They have own objectives.
You no longer do fifty hours on operations.
But on strategy:
M&A.
Partnerships.
Innovation.
And above all:
You no longer have fragile conglomerate.
But focused company.
With clear proposition.
M&A becomes opportunity.
Not "I must buy to grow" (desperation).
But "I can buy to accelerate" (strength).
It's built with focus.
First internal, then external.
Do you recognize yourself in this situation?
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