Market Window Strategy — Business Acquisition

An accomplished New York-based entrepreneur and business owner, Steve Keshtgar has led the gas station industry as owner and operator, of several different brands of franchises Steve Keshtgar also makes use of business acquisition strategy which involves the purchasing of weak businesses and transitioning them into successful and big businesses.

Acquisition strategy refers to the action of finding methods to acquire feasible target companies that eventually will generate value for the acquirer. Essentially, acquisition strategies prevent management teams from acquiring businesses with no definitive path of profitable returns. Aside from focusing on growing a business, acquirers need to understand how newly purchased businesses could generate and add value.

The point of an acquisition strategy is to enable managers to define a specific value proposition for a new venture. Among the various acquisition strategies (value propositions) that drives new business purchase is the market window strategy.

When companies see an opportunity emerging in the market for a certain product or service, they may assess their capability to launch that product or service in the shortest time possible to take advantage of the present market opportunity. If the company finally concludes that such a goal cannot be attained in the given time frame, they can acquire another company that will help eliminate the time lapse required to manufacture the product or offer the service. Often, the acquired companies are already positioned to take advantage of the market trend.