Add-On Integration Plan

Guesswork Unveiled, Issue #12

Add-On Integration Plan

Guesswork Unveiled, Issue #12

This is a continuation of my coverage of a small add-on acquisition to my existing small business. Prior posts:

• Post walking through alternative methods to underwrite small add-on acquisitions.

• Post walking through the actual add-on deal we closed in late December.

Today, I want to talk about my game plan for integrating this new business.

First, this is a client base acquisition only. We did not bring in any new staff or any material equipment (just a couple small items). As a result, the operational impact is relatively low.

Second, the add-on is roughly 13% of our revenue — moves the needle for sure, but doesn’t massively rock the boat.

Third, this is very different integration process than a larger add-on we did earlier in 2024. I didn’t write about that one for a variety of reasons, but I certainly learned a lot. Larger operations-shifting acquisitions are harder to come by and are generally require more of a strategic shift / refocusing.

By contrast, this latest add-on acquisition feels like one we may be able to repeat in a consistent manner if we get the playbook down right — in other words, this can be part of our strategy in general. It doesn’t upend the apple cart by default, the way a large add-on does. So getting this one right is important to me as an actual growth avenue going forward.

Let’s dive in.