logo News
  • Home
  • Management
    Management Show More
    Six Strategies for Moving from an Executive to a True Leader
    Jul 07, 2025
    To Build Team Execution, Grab these 5 Rules
    Jul 06, 2025
    Deppon Logistics: The Mystery of Its Rise from $1 Million to $11.2 Billion
    Jul 05, 2025
    What To Do When Management Skills Are Lacking And The Team Is Not Executing Well?
    Jul 04, 2025
    11 Common Mistakes Managers Make... And They Hit You Right On The Head!
    Jul 03, 2025
  • Marketing
    Marketing Show More
    What is differential privacy? How will it affect marketing?
    Jul 07, 2025
    How Should a Brand Be Promoted How Do You Promote a Brand?
    Jul 06, 2025
    Make clear these four questions, and you will understand which marketing method is the most effective
    Jul 05, 2025
    What Are The Characteristics Of Social Marketing? What Are All The Advantages?
    Jul 04, 2025
    How do brands use image recognition technology to understand consumers?
    Jul 03, 2025
  • Entrepreneurship
    Entrepreneurship Show More
    5 Guidelines For Financing a Startup
    Jul 07, 2025
    Buffett: Founders should have seven characteristics of success
    Jul 06, 2025
    18 reasons for your entrepreneurship failure
    Jul 05, 2025
    How to get out of the vicious circle of rapid death of entrepreneurship?
    Jul 04, 2025
    How Entrepreneurs Choose Their Business Direction
    Jul 03, 2025
  • Company
    Company Show More
    CHANEL
    Jul 07, 2025
    H&M Sweden
    Jul 06, 2025
    Kering Group
    Jul 05, 2025
    Google, one of the world's top ten brands
    Jul 04, 2025
    Tesla America Electric Vehicle & Energy Corporation
    Jul 03, 2025
  • Entrepreneur
    Entrepreneur Show More
    Keep Wang Ning Recalls Apple Ceo Cook's Secret Visit: He Didn't Know It Was Cook Until The Moment He Opened The Door
    Jul 07, 2025
    Joe Tus, CEO of EMC Company
    Jul 06, 2025
    Tim Cook CEO of Apple
    Jul 05, 2025
    Jimmy Donnell, founder of Wikipedia
    Jul 04, 2025
    Larry Page, one of the founders of Google
    Jul 03, 2025
Search
Share via
Reading: Investing In An Off-The-Shelf Company Is Also Entrepreneurial
logo logo
  • Home
  • Management
  • Marketing
  • Entrepreneurship
  • Company
  • Entrepreneur
Search
  • Home
  • Management
  • Marketing
  • Entrepreneurship
  • Company
  • Entrepreneur
Home > Entrepreneurship > Investing In An Off-The-Shelf Company Is Also Entrepreneurial
Entrepreneurship

Investing In An Off-The-Shelf Company Is Also Entrepreneurial

If you have a good idea for a business, you have to be bold enough to make it happen

Last updated: Jun 07, 2025

For some entrepreneurs, the challenge is not to start a company from scratch, but to take over someone else's company and make it better. Both approaches are steeped in entrepreneurship and entrepreneurial philosophy.


Timothy Bovard, an adjunct professor of acquisition-based entrepreneurship at INSEAD, says that the challenge is not to start a company from scratch, but to take it over and make it better. Timothy Bovard notes, "Many people consider themselves qualified 'fixers' although not necessarily creative and innovative."

"If you have a good idea for a business, you have to dare to make it happen; however, many entrepreneurs are better at taking over an existing company and making it bigger and better, putting all the characteristics of a start-up into play."

Finding the right acquisition
According to Bovard, finding the right acquisition target is a creative act in itself, requiring a range of self-awareness and external support. "Acquisition-based entrepreneurship refers to starting a business by acquiring small and medium-sized companies, so the potential market is as big as you can imagine. How do you find the right acquisition target? First, the entrepreneur must establish a comprehensive set of search criteria. As with house hunting, you need to define your target company's category, its sector, its region, its business problems, and so on. Only then start casting your net. Of course, this all needs to be done in a methodical and professional manner."


During the search process, entrepreneurs need to make constant self-reflections, and entrepreneurs need to dare to be honest with themselves. "Another important point is to have someone around who can give advice and reminders at the right time. This person has the courage to say to you things like 'this company is great, but it's not for you'." Bovard says he himself has an old friend in the watch industry who has given him help, advice and criticism over the years.

"If you can find the right company with a clear goal and vision for growth, it can be a match made in heaven," states Poivard. As President of the independent watch brand Cabestan, his vision for the brand's future is to make it a rare brand that watch connoisseurs crave. This means broadening the niche market of this ultra-luxury brand. Initial initiatives include the launch of a new, award-winning watch; another new initiative is a limited-edition collaboration with the luxury sports car Ferrari. Although the global economic crisis has had little impact on Cebestan customers, demand has slipped for a while. "This has made us reflect on the true value we offer our customers: our brand is not only about exceptional design, but also about meticulous craftsmanship, striving for the ultimate interpretation of precision and luxury to create stunning masterpieces that are flawless," says Poivard.

Looking for financing
Bovard says it's not difficult to raise money if you find the right company. He says investment firms have a lot of cash on hand and there are some investors who are particularly inclined towards companies whose management has bought out and bought in. But Bovard points out that unlike start-ups, acquisition start-ups are not presented to investors with a business plan full of hypothetical data, but with an actual action plan. That is: the next step forward for the company; a concrete plan for the first 100 days or first year of operations after taking over the company, etc. "Once you have a concrete plan, you can translate it into concrete data to convince investors and bankers. And in the process, entrepreneurs can test the viability of the project themselves."

However, whether a CYE starts or acquires a company, the main time and effort of the entrepreneur should be spent on management. It is clearly easier for young entrepreneurs to acquire a company with an existing management team, a proven business track record and already some market and cash flow than to start a new company from scratch. "Anyone who really has the leadership qualities, is willing to put in the time and effort to learn the business and has a clear vision has a good chance of success."


Some entrepreneurs believe that they have what it takes to turn around a company that is in poor shape. Bovard's advice to this is: "For young managers or young people fresh out of an MBA course, the first criterion for selecting a company should be whether it is in good financial shape. It's better to pay a higher price for a company that is financially sound and has a stable cash flow, so that even if something goes wrong, the company doesn't collapse and you lose everything. Turning around an underperforming company sounds exciting, but it's also dangerous."

Potential pitfalls
Other potential pitfalls include differences in language or management style with the target company and its management. It's true that a comfortable working environment is a precursor to success, but the biggest stumbling block on the road to success is being too hasty. "People tend to put pressure on themselves in terms of time when looking for a target company. Remember that the search for the right company usually takes between 18 and 24 months. Be patient and cautious, and don't be constrained by time to act hastily. If you take a little more time to find a better and more suitable company, the risk of running a business in the future will be greatly reduced."


Acquisitive start-ups may not be as respectable as start-ups, but the road ahead is the same - the right people, relentless effort, leadership and foresight are all essential. "And passion! Entrepreneurship relies on passion, and passion is synonymous with entrepreneurship," says Bovard.


TAGGED: Business, Acquisition, Shortcut
Previous Article 6 Of The Hottest Recent Marketing Technology Numbers
Next Article Five Ways To Start a Business And Say Goodbye To The Low-Cost Era

Most Popular

How to defeat your competitors in the entrepreneurial circle
Entrepreneurship Jun 02, 2025
Joe Tus, CEO of EMC Company
Entrepreneur Jul 06, 2025
What To Do When Management Skills Are Lacking And The Team Is Not Executing Well?
Management Jul 04, 2025
Setbacks And Failures Are Both Trials And Opportunities On The Entrepreneurial Journey
Entrepreneurship Jul 02, 2025
To Build Team Execution, Grab these 5 Rules
Management Jul 06, 2025
The pillars of the Korean economy - the Samsung empire
Company Jun 28, 2025

You Might Also Like

Management

Managers Need To Do Three Things Well: Clarify Responsibilities, Optimise Processes And Clarify Systems!

Jul 02, 2025
Management

How To Be a "Motivational" Manager?

Jul 01, 2025
Management

Management Story: Change Is a Golden Key To Business Success

Jun 29, 2025
Management

Five Great Tips For Building Harmonious Win-Win Employee Relationships

Jun 28, 2025

Copyright © 2025 busiis.com. All rights reserved. User Agreement | Privacy Policy