The Chamber of Commerce of Metropolitan Montreal

How to promote the growth of your company through an acquisition strategy

Why should companies look into a growth through acquisition strategy? What are the main challenges to making an acquisition successful? Watch this video to find out.

The expansion of Quebec inc.

In 2017, nearly 50,000 transactions were carried out globally, including more than 2,000 in Canada. And Quebec has followed suit. Since 2010, Quebec entrepreneurs have acquired more than 300 companies throughout the world, which is three times more than the number of Quebec companies that have been purchased by foreign investors during that same period.

Representing a factor of investment, profitability, but also risk, growth through acquisition is a path to quick growth. It allows companies to pierce new markets, take advantage of synergies, and increase their profitability more quickly than simply relying on internal growth. It is therefore unsurprising that one-fourth of SME executives plan on making acquisitions in the short or long-term.

“By making an acquisition, a company can expand their client base, increase their sales volume, and sometimes increase their production capabilities. It can therefore grow and become a medium-sized company much quicker.”

- Michel Leblanc, President and CEO of the Chamber of Commerce of Metropolitan Montreal.

Buyers reveal the secrets to a successful acquisition

On October 25, a panel on the growth through acquisition strategy for businesses was organized by the Chamber and took place at the Palais des congrès de Montréal. Four Quebec companies that have successfully carried out acquisitions over the years took part: Biron Health Group, BRP, SNC-Lavalin, and CGI.

During the panel, representatives from these companies generously shared tips for a successful acquisition. Other than systems and equipment, every one of them mentioned that integrating cultures was one of the main challenges that is often underestimated.

“A successful acquisition involves a unified organizational culture that develops and is deployed at every level of the new company. There is no magic bullet when it comes to this: you need to pay special attention and be patient! The buyer must not hesitate to get strategic guidance if needed, including for human resources.”

- Michel Leblanc, President and CEO of the Chamber of Commerce of Metropolitan Montreal

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