The current economical situation makes this period an exceptional if worrisome one for entrepeneurs and small/medium business leaders. The economical situation and its impact on cash management and the very much diminished ability of raising cash through VC or banks, make this an exceptional time for companies to consider how to grow and analyze if we want/can/should continue walking alone or consider options of non-organic growth which in “normal” times we will not consider.
Paradoxically I do tend to believe that in many cases these possible marriages (acquisitions or pure mergers) if well manage could be very beneficial to navigate through these turbulent moments and help to emerge as a much more solid and healthy player when the economy cloud will disappear
In mmCHANNEL we have been discussing such options with our Shareholders and also with some of our different partners where we ask ourselves maybe there is a deeper and more beneficial way to collaborate? We have the obligation to be 10 times more creative than in the past and to create as many options as we can for the business to keep growing one way or another.
Why we will consider this is because of 2 strategic options: either achieving cost synergies and/or creating revenue stimulation. I tend to believe that with companies of our size (under 1 Mio Euro in revenues), being mostly product focused companies; it should be revenue the key variable to analyze between the companies, as cost will be for sure optimized one way or the other if an integration happen
The question that we have to be able to articulate clearly to somehow understand if we share enough of a future vision (even if you could have different products and paths to get there) which leads to being able to clearly articulating the following questions:
- Where are the companies 3 strategic priorities within the next 12 months
- Where do you want to go / want to be in 2 years?
- And what is the role that you as one of the business leader want to take on that future vision
Even if in many cases after one conversation it is clear that we should maintain our course it is always fascinating to hear peer entrepeneur explain their business, their passion, struggles and plans. It is always refreshing and also invigorating
Finally while having these many discussions and with those that you think maybe we do share a vision we need to keep asking ourselves the “human” factor. No matter how aligned or complementary our strategies and companies are, what will really make the result be better that the sum of the parts is we the business leaders of 2 companies can work together and believe that when
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