According to commercial business sales and acquisitions service provider Avondales first ever Annual Growth versus Survival ReportAround 60 per cent of companies turning over 10m have completed an acquisition in the past 24 months.
The report found that 36 per cent of all respondents said they were also considering an acquisition in the next 24 months with two-thirds confidently declaring that they are in a “state of growth”.
The report, which followed a roundtable discussion between Kevin Uphill, chairman of Avondale and parties including FD solutions, PHD Equity Partners and Holmesdale Building Society, found that as well as acquisitions companies were using innovation and boosting their brand image as key drivers in boosting business growth.
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It revealed that 48 per cent of firms had launched new products to boost sales with 62 per cent putting a heavy focus on marketing to attract more customers.
However despite the optimistic results Avondale warned that 94 per cent of SMEs said one of the key challenges they faced in maintaining their future growth was in retaining quality second tier middle management.
The last 12 months has proved to be a successful year for UK businesses as the stabilising economy has allowed them to make calculated risks to achieve real growth. Our first annual Growth versus Survival” report allows us to examine the methods these companies use to maximise growth,” said Uphill.
The report has highlighted that whilst the majority of businesses are growing, retaining middle management remains a common problem for UK companies. This lack of second tier leadership has led to business owners focusing on the day-to-day running of their organisations as opposed to concentrating on the overall strategy and in a sense, could be impeding their own long-term growth.