Business experiment based on an assumption?

Hello all

So i am thinking about testing an idea i have been floating around in my head, the idea goes as follows:

My intention is to grow a business through acquisitions but first i would like to determine whether it is financially viable, or if it would be better to just hire a certain amount of people to do the same job. The job in question at this point gives no context to the problem so here is a thought experiment: imagine you have a need for 2 things, would you go with option A and hire the required services from 2 different companies, or option B: find a company that can do both regardless of price?

My thinking on this matter leans towards option B, i mean that is what i would personally do plus acquiring a company that focuses on a subject differing from what i do would increase the potential customer base.

So far i can see some of the upsides, but i would like your help in form of feedback as to the downsides or upsides to acquiring a company or feedback of any kind regarding this idea.

Thank you very much for the answers in advance.

1 Answer

Relevance
  • Bill
    Lv 6
    4 weeks ago

    "regardless of price" is not the way to look at anything.  One should evaluate alternatives and options with life cycle economic projections in mind.    

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