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Time to get on the acquisition trail (but take a different path)
Plimsoll's latest acquisition analysis has looked into the acquisition attractiveness of the UK's largest 692 cleaning equipment & materials companies. The study has identified 81 firms as classic acquisitions - underperforming businesses that predators would usually look for.
However, the research company suggests that it is time buyers should be looking to broaden their horizons away from these classic acquisitions and should instead take a look at the 39 companies identified as high value acquisitions.
David Pattison, chief analyst, says: "There are plenty of companies that need capital and would welcome investment. Distress sales have dominated the market in recent years as strong companies have looked to take over weaker companies and exploit ailing businesses.
"But it is now time for a change in strategy. There are 39 firms in the cleaning equipment & materials industry that buyers should be looking at.
"These companies are privately owned, have increased sales over the previous year, are debt free and are showing excellent profits."
And it is these qualities, David Pattison argues, that make these businesses attractive acquisitions: "Taking over a weak company takes time, is diverting and is a high risk," he warns. "But these high value acquisitions would immediately add value to your bottom line as well as give you instant power in the market.
"Indeed, buying one of these companies would give you quick access into a fast growing market and would instantly give you power - essentially forcing many of your already-weakened competitors out of the game.
"Of course some of these high value acquisitions would command a high price premium, but this new analysis tells you why some companies are worth more than others and enables you to seek out growth.
"Most successful businesses work with Plimsoll. For over 25 years we have worked with many of the leaders in this sector and recognise the challenges. A few minutes with a Plimsoll report can change perceptions and open minds to much greater profitability."
The new Plimsoll report - Acquisitions - provides an in-depth market and industry analysis of the 692 leading companies in that industry. Plimsoll's user-friendly analysis tells you which businesses could be worth investment.
Readers of the Cleanzine are entitled to a £50 discount of this report by calling 01642 626419 and quoting reference PR/SV18.
15th November 2012