The Beauty of the Bolt-On Acquisition
2023 will be a great year for bolt-on acquisitions.
This strategy is used when a larger company acquires a smaller one with a specific motive to obtain:
- New types of customers,
- New or improved product/service,
- Broader geographic footprint,
- Intellectual property,
- Improve vertical
Here are some good examples of bolt-on acquisitions:
- Thor Industries manufactures RV’s and bolted-on independent brands like Airstream and Jayco.
- Sports drink maker Bodyarmor was an independent brand before Coca-Cola bought them in 2018.
This strategy can be great for both companies.
The acquiring company benefits from faster growth without years of uncertainty and the smaller company can get beyond its balance sheet limitations.
Want more information on a bolt-on acquisition or sale strategy? Drop your thoughts in the comments.
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