growth by acquisition

[Dawgy]

at what point do you think that growth by acquisition, rather than building something new, is better? is it 100% a financial decision for you? or does time, simplicity, and branding figure into the equation?

[Lee]

Very good question and to be honest, it is going to be dependant on several variables to the individual company rather than have a standard answer.

For the most part, aquisitions of any type be they complete sites, affiliate programs, free sites or content productions need ideally, to be looked at so far as, how much has the potential aquisition generated in revenue over a set amount of time and also, how much work has been put into the project to get the revenues generated.

The one major thing you need to keep in mind in this instance is that, if the amount of work put in, exceeds the amount of free time you presently have you need to rethink your options, there are several things that could, potentially happen which would make your growth become stagnant after a period of [X] days, weeks, months, years.

That being said, aquiring growth through gaining additional sites / services that another company may be selling, as long as they are profitable, not only on paper but, in your bank account can be a very good way of ensuring your long term financial viability

Of course, with the new aquisition, apart from what has just been mentoned, you also get the new hassles that may 'potentially' come with a new purchase and, this isnt just true online but also off.

Basically, if you can afford the aquisition and, are able to either maintain its current value or, preferably exceed its current value then personally, as long as you going still be financially secure after the purchase, go for it.

Bear in mind though, if someone is selling a company, site, service etc, they are doing so for a reason and you SHOULD thoroughly investigate the reasons for the said sale.

Regards,

Lee