1 + 1 = 3

By February 8, 2017Blog
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Saving On Overhead Costs Through Business Acquisitions

By Leon Stephan

Maybe I am a poor excuse for an accountant, but that is what I like to achieve for myself and my clients.

And it can be done! And yes we are talking legitimately, not with dodgy accounting.

If you have a successful business you have no doubt felt the frustration of how much it costs to run a successful business, in terms of administrative overhead, staff, office space, plant and equipment etc. etc.

Guess what? There are many others out there experiencing the same thoughts.

Your business is carrying this onerous overhead as are many others. What if you put two similar businesses together? Would the overhead cost be double that in your existing business?

I say No!

A carefully selected business acquisition should deliver significant economies of scale and these savings are most prominent in administration staff, physical resources required or used such as office space, office resources such as photocopiers, purchasing, invoicing, accounting and much more. Not to mention in some production businesses larger production runs or more efficient scheduling or batching can deliver significant savings.

I give you 1 + 1 = 3.

Advivo corporate advisory division can assist you in sourcing pre-qualified and appropriate businesses to add to yours and then assist with the due diligence, valuation and purchase negotiations on your behalf.

A normal part of the process would include detailed financial modelling, identifying the cost savings achievable by combining the two businesses and if required assistance with securing debt funding to complete the acquisition.

Please call Leon Stephan on 07 3226 1800 to discuss.

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