Merge Your Culture, Aquire Your Success | John Bly | TEDxBryantU

Summary

The speaker shares his entrepreneurial journey, emphasizing the importance of growth through mergers and acquisitions for small to midsize businesses. He challenges the notion that only large corporations and private equity groups should innovate and grow in this manner. With statistics highlighting the success of acquired businesses and the potential for strategic savings, he encourages entrepreneurs to consider this often-overlooked strategy for expanding their horizons beyond traditional sales and marketing.

Takeaways

• 🚀 The speaker emphasizes the importance of entrepreneurship and innovation, sharing their personal journey of acquiring and growing businesses.
• 💡 The concept of 'merge your culture, acquire your success' is introduced as a key to entrepreneurial growth, suggesting that combining unique abilities and cultures can lead to success.
• 🛒 The speaker highlights the often-overlooked strategy of mergers and acquisitions as a critical component of business growth, alongside marketing and sales.
• 📈 Growth is essential not just for the entrepreneur but also for the company's culture and team, as it challenges people to think outside their comfort zones and innovate.
• 🏆 The speaker's experience of acquiring 13 accounting firms and four fitness businesses showcases the potential of small to midsize companies to grow through strategic acquisitions.
• 🤔 The script questions why private equity groups and public companies are historically the only ones innovating through mergers and acquisitions, suggesting that smaller companies should also leverage this strategy.
• 📊 Only 4% of companies started in the U.S. reach $1 million in revenue, indicating a significant failure rate among startups and the potential for growth through acquisition.
• 🔑 Growth through acquisition can remove the 'glass ceiling' in companies, providing opportunities for employees to specialize and innovate without waiting for others to leave.
• 💰 Acquisitions can provide immediate cash flow positivity and significant returns on investment, making them an attractive strategy for business growth.
• 🔍 The speaker identifies strategic savings and synergies as benefits of mergers and acquisitions, allowing for cost reductions in areas like rent and IT infrastructure.
• 🌐 The current market presents a unique opportunity for mergers and acquisitions due to a high supply of businesses for sale and a potential lack of demand from new startups.

Q & A

What was the speaker's age when they decided to leave their job and pursue entrepreneurship?

The speaker was 25 years old when they decided to leave their job and pursue entrepreneurship.

What was the initial spark that led the speaker to consider buying a CPA firm?

The initial spark was an advertisement in the back of a CPA magazine for a CPA firm for sale, which the speaker read cover-to-cover.

How many accounting firms and fitness businesses has the speaker acquired in the last 13 years?

The speaker has acquired 13 accounting firms and four fitness businesses in the last 13 years.

Why does the speaker believe that small to midsize companies should consider mergers and acquisitions for growth?

The speaker believes that small to midsize companies should consider mergers and acquisitions for growth because it allows them to innovate, expand their horizons beyond just sales and marketing, and provides opportunities for their team to grow and specialize in different areas.

What is the concept of 'unique ability' as mentioned by the speaker?

The concept of 'unique ability' refers to the few things that an individual or a team is particularly good at and passionate about, which can be leveraged for innovation and growth within a company.

How does the speaker define the importance of growth for a company's culture?

The speaker defines the importance of growth for a company's culture as a means to challenge people to think outside their comfort zone, build a legacy, and create an environment that encourages learning, innovation, and collaboration.

What percentage of companies started in the United States reach 1 million dollars in revenue, according to the speaker?

Only 4% of all companies started in the United States reach 1 million dollars in revenue.

What is the percentage of businesses acquired in the US that are still in business five years later?

90% of all businesses acquired in the US are still in business five years later.

Why does the speaker argue that mergers and acquisitions are often overlooked as a growth strategy by small and mid-sized companies?

The speaker argues that mergers and acquisitions are often overlooked because small and mid-sized companies tend to focus on sales and marketing, and may not be aware of the benefits of M&A, such as immediate cash flow positivity, high ROI, and strategic savings.

What are some of the strategic savings that can be achieved through mergers and acquisitions, as mentioned by the speaker?

Some of the strategic savings that can be achieved through mergers and acquisitions include cutting costs on rent, IT infrastructure, and software, as the combined company can avoid duplicating these expenses.

What is the current supply and demand situation for businesses in the United States, as described by the speaker?

The current supply and demand situation is characterized by a high supply of businesses due to baby boomers retiring and controlling a large portion of privately held companies, while the demand is low due to a decrease in new businesses being started by people under the age of 30.