If You Can't Beat 'Em...
When it comes to acquiring competitors, sometimes size does matter.
As far as growth strategies go, buying up competitors can be an
inexpensive shortcut to new revenue, new technologies and talented
people. Jennifer Floren, founder and CEO of Experience Inc., got
all those things when she acquired three competing online
recruiting companies. Floren, 34, was surprised, however, that the
entrepreneurial spirit of her small Boston-based company was
actually an advantage when bidding on other small, entrepreneur-run
businesses.
Floren knew that large media companies had scooped up dotcoms in
her market only to shutter them a short time later, so her
acquisition offers emphasized that Experience would keep the
employees and take care of the customers. In that light, all three
companies decided that being part of another small company was
their best option. "We had competition in all the
acquisitions," says Floren. "The cultural fit made the
difference."