Every business owner dreams of scaling up, but traditional business growth strategies often fall short when aiming for exponential expansion. Many companies focus on organic growth—winning more customers, hiring more employees, and expanding operations over time. While this approach works, it has its limits.
At a certain stage, scaling requires more than just incremental improvements—it demands a strategic leap. That’s where Mergers and Acquisitions (M&A) come in. When used effectively, a programmatic M&A approach can help businesses break through growth ceilings, unlock new revenue streams, and reach ambitious targets faster than organic expansion ever could.
For mid-market companies looking to 10X their growth, a buy and scale strategy isn’t just an option—it’s a necessity. Let’s explore why incorporating acquisitions into your playbook can be the game-changer your business needs.
The Challenge of Scaling Up: Why 10x Growth Feels So Hard
Let’s start with a common scenario.
A client recently told me about their ambitious growth goal: they were running a $5M revenue company and wanted to scale to $50M. They were excited, energized, and had even mapped out their plan:
- Step 1: Grow to $10M revenue within the next 12 months.
- Step 2: Continue expanding until they hit $50M within the next 5–7 years.
But as I listened, something became clear—they were relying entirely on organic growth to achieve this. The plan included hiring more people, investing $500K–$700K in new headcount, and hoping that the additional capacity would allow them to push harder for growth. While there’s nothing inherently wrong with organic growth, it has major limitations—especially when trying to achieve a 10x transformation.
Why Organic Growth Alone Isn’t Enough
Many businesses can comfortably grow from $500K to $5M organically. The numbers are small enough that expansion is manageable, and there are plenty of operational efficiencies to unlock.
But going from $5M to $50M? That’s a different game entirely. Why? Because of infrastructure constraints.
- Your current team structure is optimized for a $5M business—not a $10M or $50M one.
- Your office space, equipment, and technology were built for a certain scale, and doubling or tripling in size often requires heavy investment upfront.
- Your management structure isn’t designed to oversee a much larger operation.
This type of growth requires significant capital investment before you ever see the revenue. And that’s assuming everything goes well—what if the new hires don’t perform? What if customer acquisition slows down? What if external factors, like interest rates or supply chain disruptions, delay your plans?
The Alternative: Scaling Through Programmatic M&A
Instead of relying solely on organic growth, imagine this:
- Instead of hiring a new sales team, what if you acquired a company that already has customers and an experienced sales team?
- Instead of spending on new equipment, what if you bought a competitor that already has everything in place?
- Instead of gradually expanding to new markets, what if you acquired a business already operating in that space?
A programmatic M&A approach eliminates the guesswork and allows you to scale without taking on excessive upfront risk.
Why M&A Must Be in Your Growth Playbook
M&A is often a blindspot for most entrepreneurs, because they’ve always grown organically. Their experience has been:
- Selling their product/service, reinvesting profits, and slowly expanding.
- Working with a few investors or lenders, but ultimately growing by sheer hustle.
- Assuming that acquisitions are only for “big companies” or private equity firms.
But the reality is, M&A isn’t just for Fortune 500 companies—it’s a powerful tool for mid-market firms, too.
Example: A Buy and Scale Strategy for Rapid Expansion
Let’s run an example with some numbers. Say you run a $5M company and you find a $3M revenue company to acquire. This target business:
- Generates $800K in net profit per year
- Can be acquired for around $2M (structured as $400K cash upfront, with the rest financed by banks or seller financing)
After debt payments, this business still produces around $500K in cash flow per year. This means your initial $400K investment is fully recovered in about a year—and from that point on, your return on equity is 100% annually!
If the two companies cross-sell to each other’s customer bases, streamline operations, and unlock additional efficiencies, the return gets even better.
By leveraging a buy and scale strategy, you can reach your revenue targets faster, with less risk than if you tried to build everything from scratch.
Avoiding the Common M&A Pitfalls
You’ve probably heard the stat that 80% of M&A deals destroy value—and it’s true, but that’s often due to poor execution. Here’s how to avoid the biggest mistakes:
1. Buying for the Wrong Reasons
M&A is not just about getting bigger. If you acquire a company with no strategic advantage, you’re just creating extra headaches.
- Good Reasons: Expanding into new markets, acquiring complementary products, or unlocking cross-selling opportunities.
- Bad Reasons: Just because a competitor is doing it, wanting to be bigger for the sake of it, or hoping it will fix internal issues.
2. Poor Due Diligence
Even if a company looks great on paper, hidden risks can destroy value.
- Thorough commercial, financial, HR, and legal due diligence is essential.
- Are their financials accurate? (Verify through audits.)
- Do their customers overlap with yours? (Make sure cross-selling is viable.)
- Are there hidden liabilities? (Legal and compliance issues can be deal-killers.)
3. Weak Integration Planning
A deal doesn’t end at closing—integration is where value is created (or destroyed).
- Who stays? Who goes? Who gets promoted?
- How do you communicate with existing customers?
- What’s the plan for branding and operational changes?
You should develop a 100-day integration plan before closing the deal—not after.
Get a Fractional Corporate Development Function with Centurion 7
Many mid-market companies don’t have full-time CFOs or Corporate Development teams—which is where Centurion 7 can be a game-changer.
Our Services:
Fractional CFO Services
- Capital structure planning
- Financial modeling for M&A
- Cash flow and profitability optimization
Fractional Corporate Development Services
- Identifying acquisition targets
- Deal structuring & negotiations
- Post-merger integration planning
This allows companies to access high-level expertise without hiring full-time executives.
Final Thoughts: Think Bigger, Move Smarter
If you want to 10X your business, you can’t just “do more of the same.” M&A must be part of your playbook—when executed well, it’s the fastest and most strategic way to scale. By combining business growth strategies, a programmatic M&A approach, and a buy and scale strategy, Centurion 7 can help you achieve exponential growth without excessive risk.
It’s time to think bigger. It’s time to move smarter. Let’s make 10X happen.