When you have five businesses but none of them are growing
And you want to make acquisitions without having grown what you already have
When you have five businesses but none of them are growing
And you want to make acquisitions without having grown what you already have
Does this sound familiar?- Five different businesses under one company
- Stuck for three years, same revenue
- You want to buy other companies to grow
- But your people won't take on responsibility
- And the fear is: business continuity in the medium-to-long term
The trap
There's a type of entrepreneur who has built something.
Five businesses.
Forty people.
Significant revenue.
No debt.
For three years.
Same revenue.
Same structure.
And when you think about the future:
Fear.
Not imminent failure.
But gradual irrelevance.
In five years, ten years:
Will this company still exist?
Or will the market have swallowed it up?
And the solution you see is:
Let's buy another company.
That way we grow.
That way we get stronger.
But the problem isn't that you haven't bought.
Why it happens
Five businesses aren't a strategy.
They're opportunities.
First one.
Then another.
Then another still.
Management software.
IT systems.
Print and copy.
Restaurant tills.
Office furniture.
Every time: “This is an opportunity.”
Never: “This creates synergies with what we already have.”
And so you end up with five businesses that don't talk to each other.
Software client ≠ furniture client.
Till sales ≠ print sales.
Fifty hours a week.
Coordinating everything.
But nothing grows.
And your people?
They don't take responsibility.
They don't decide.
They don't see the numbers.
Because you manage everything.
You want to make acquisitions?
But how do you integrate another company
if you haven't even integrated your own five?
The method
Focus instead of accumulation.- A ruthless audit (which business has a future)
Five businesses.
Which have margins?
Which are growing?
Which have a 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.
Print: a commodity.
Options:
Sell.
Spin off.
Close.
From five businesses to three core ones.
Concentration equals focus.- An integrated client strategy
Three core businesses that talk to each other.
An industrial client:
Buys management software.
Buys IT security.
Has a staff canteen → buys tills.
No longer five separate businesses.
But a single, integrated proposition.
Finally: synergy.
- Empowering your people
Three Business Unit Managers.
One for each core business.
Their own P&L.
Their own targets.
Bonuses tied to results.
A weekly dashboard.
They see the numbers.
They decide commercial actions.
You: from operator to CEO.
A team that decides instead of just executing.- M&A afterwards (not before)
Year 1: focus on the core, exit the rest, integrated strategy.
Year 2: organic growth, an empowered team.
Year 3: NOW acquisitions.
With a solid base.
With a clear strategy.
With a ready team.
What changes afterwards
You no longer have five scattered businesses.
But three synergistic core businesses.
An integrated proposition.
A client who buys everything.
A client strategy finally exists.
A clear go-to-market.
An ideal client defined.
An empowered team.
They make decisions.
They see the numbers.
They have their own targets.
You no longer do fifty hours of operations.
But on strategy:
M&A.
Partnerships.
Innovation.
And above all:
You no longer have a fragile conglomerate.
But a focused company.
With a clear proposition.
M&A becomes an opportunity.
Not “I have to buy to grow” (desperation).
But “I can buy to accelerate” (strength).
It's built with focus.
First internally, then externally.
Do you recognise yourself in this situation?
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