When to Buy Your Competitor (And When to Walk Away)

Every growing CEO thinks about it eventually: "Should I just buy them?"

A competitor struggling. A complementary business for sale. A supplier who'd be worth more inside your walls than outside.

The answer is usually yes, if you do it right. And a catastrophic no if you don't.

Here's the framework we use:

Buy when:

• The target fills a strategic gap (geography, capability, customer segment)
• You can integrate operations within 90 days
• The deal is accretive within 12 months
• Your balance sheet can handle the stress
• You have management bandwidth to absorb the complexity

Walk away when:

• You're buying revenue, not profit
• The culture clash would destroy value
• Integration would distract from your core business
• The seller's books are a mess (what else are they hiding?)
• Your gut says no but your ego says yes

Most failed acquisitions fail for the same reason: the buyer fell in love with the idea and ignored the math.

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The Deals You Don't See Coming

The best acquisitions aren't listed for sale. They happen in conversations. Relationships. Timing.

A founder mentions they're tired. A competitor's key employee reaches out. A supplier hints they'd consider an offer.

If you're not positioned to move fast, you'll miss them.

"Positioned" means:

• Your books are clean enough to show a bank tomorrow
• You have a financial model that can stress-test any deal
• Your team can run due diligence in weeks, not months
• You know your walk-away number before you start negotiating

We've helped clients see deals 18 months before they hit the market. Not because we have a crystal ball because we're in the conversations, watching the signals, building the relationships.

One client doubled their revenue through a single acquisition. Another positioned for exit at 8x by acquiring two smaller competitors first.

M&A isn't a transaction. It's a strategy. And strategy requires architecture.

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