Craig West's thoughts on Strategic Acquisition | Succession Plus

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Strategic Acquisition


Strategic Acquisition

By , May 8, 2019
Business Valuation

Strategic Acquisitions are the flavour of the month, certainly at Apple, so how do you take advantage?

Tim Cook, CEO of Apple told CNBC over the weekend that Apple (which is sitting on approx. $225 Billion in cash) has made 20-25 business acquisitions in the last six months alone.

“We acquire everything that we need that can fit and has a strategic purpose to it” Cook was quoted at the recent Berkshire Hathaway Annual meeting – “Apple is primarily looking for talent and intellectual property”. Importantly many of the acquisitions are small and include Pullstring, which creates apps for digital assistants and Data Tiger, a small digital marketing business.

To highlight the strategic acquisition model and focus, in 2018 Apple purchased Texture – a digital subscription model for magazine publishing – and 12 months later Apple rolled out its new subscription service Apple News+.

Strategic acquisitions are a great way to maximise value and create synergy – this is not a financial multiple being paid but a strategic premium for IP, talent and products that Apple can use its massive reach to amplify.

What IP or product does your business own that could form the basis of a strategic sale to help you maximise exit value?

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.