The Secret to Rapid Business Growth: Strategic M&A for Success!

Name: The Secret to Rapid Business Growth: Strategic M&A for Success!
Uploaded: 2024-01-28T15:00:39+00:00
Duration: 35 s
Channel: Jason M. Lemkin
Description: In this segment, Jason Lemkin explains that when a startup’s growth stalls, the first response is usually to improve efficiency, pause hiring, and raise…

28 Jan 2024 · 1 min

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In this segment, Jason Lemkin explains that when a startup’s growth stalls, the first response is usually to improve efficiency, pause hiring, and raise prices. While these tactics can buy time, Lemkin argues that truly rapid scaling often requires strategic acquisitions. He cites HubSpot’s long‑term product development as an example of organic growth, but emphasizes that great founders should look to bolt‑on acquisitions, targeting companies with more than $20 million in annual recurring revenue (ARR) that are affordable and can meaningfully move the needle. Lemkin predicts a wave of attractive M&A opportunities in the $100‑$400 million ARR range in the coming year.

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And people, when growth slowed, people played the first card, which was get more efficient, pause hiring, focus on the base, raise prices, raise prices, raise prices, raise prices. You can build another product and try to get it to market like HubSpot did and wait 10 years to build HubSpot CRM into $700 million. If you're great founders, you gotta buy something. You gotta buy something. They're all looking to bolt stuff on north of $20 million in ARR that they can afford, which is the tough part of the conversation, that they can afford that can move the needle at some level, right? Um, I think there will be lots of good M&A opportunities to bolt on in like the $100 to $400 million range next year.