HyperGrowth – The solution of every Problem?

We are specialists in target scouting and target screening. But why do these skills help companies grow very quickly? We call it HyperGrowth and that’s what today’s article is about.

How can companies grow?

There are two types of business growth. First, a company can grow organically and second, of course, it can grow inorganically.

If we look at organic growth, it means that growth from generating more revenue equals more customers, or projects and therefore more work.
To accomplish this work and tasks, a company needs resources. The main resources are employees, i.e. human capital. This resource is not only expensive, but hard to get in today’s markets.
We are in an employee market where the good, educated employees can choose their employer.
How many new resources of this type can a company add each month? 5? 7? 20?
Consequently, we have a clear limitation here, which often prevents rapid growth.

At first glance, inorganic growth seems to be suitable for rapid growth. Really?

Let’s take a closer look.

Inorganic growth means acquiring and integrating companies or parts of companies. The plan of acquisition is already inhibited during the search for suitable companies.
A research desk is commissioned to look around the market for suitable companies. The RD delivers a whole bunch of addresses. Is that enough? No. That’s not even close to enough.

Because then the work really begins. All targets on the list have to be contacted and asked about the intention to sell. This requires a lot of intuition and, above all, M&A experience. An RD can’t offer that (by the way: we at eightM can 😉 ).

The target so close and yet so far

Once a target is found, the M&A process begins: NDA, NBO, LOI, DD, SPA…. And a whole realm of negotiations in between. It takes a long time and the growth is probably not noticeable until the next fiscal year. Hopefully.
Consequently, not fit for HyperGrowth either. At least not a process on its own.

What actually is HyperGrowth?

We define HyperGrowth as extremely fast growth of a company through a good Buy&Build process that constantly (preferably monthly) provides the main company with valid targets, so that different targets are in different stages of the M&A process.
The main company is thus able to buy several companies at the same time during the year, thus accelerating its own growth. Using hypersonics.

Is HyperGrowth the solution?

Depends on the entrepreneurial goal. But acquisitions alone are not enough. It’s almost more important to integrate the companies so that they form a single entity that pulls together in one direction.

We are HyperGrowth experts and have already successfully implemented our own concepts. Let’s talk about it.