Proceed with caution!

 

The benefits of being large are compelling and many agencies are choosing the fast track to growth by acquiring, merging, or joining clusters. 

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Mergers, acquisitions, and cluster arrangements offer many benefits. HOWEVER, success requires considering a wide variety of issues, including:

• tax implications

• cash flows

• new lines of authority

• different business practices and agency cultures

• automation systems

• training and re-training

• new companies

• and, the list goes on and on. 

 

Price too often becomes the sole focus—which can be devastating. Studies show that as many as 90% of all agency acquisitions have a negative return on investment.

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Our experience suggests many of these acquisitions that lost money could have been profitable if they were structured better. Remember, a successful deal does not mean the deal is closed. Almost anyone can do that. Making money on the deal is much more difficult.

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At Burand & Associates, we help guide our clients through all the issues to ensure a successful result. Our comprehensive services begin with a valuation accurate for the specific situation and end with a deal structured to benefit our clients. We analyze multiple scenarios so our clients have a better understanding of their risks and profit potential. As a result, our clients realize many advantages:

• Cash flows are more secure and larger.

• Deals are safer and much more profitable.

• Deals are more easily agreed upon.

• All parties win!

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If a fast track growth strategy is in your future, give us a call. Take advantage of our resources and experience.