Geographic Influence on the M&A Process & Organic Growth

<p>While we specialize in M&A for IT Services firms, we also have been helping these companies grow organically for over 20 years. Our proven specialization, verticalization, and productization <a href="https://www.revenuerocket.com/wp-content/uploads/2020/03/SVP-Revenue-Realizationv2.pdf" target="_blank">(SVP)</a> method is the key to sustainable growth. Revenue Rocket works with global IT Services leaders to secure their market position, expand in new or adjacent markets, and grow profit long term. One area we are going to focus on today is geographic expansion.</p><p>When looking at corporate expansion, businesses often overlook the strategic and opportunistic benefits that can come from looking at geographies beyond their current service area.  At Revenue Rocket we look at many attributes when uncovering a geographic expansion opportunity for a client.  Some obvious ones include; booming economies in niche markets such as an influx of tech investment in a certain city which in turn brings the talent.  </p><p>A prime example of this was the influx of capital (human and cash) that Austin Texas experienced in 2016 & 2017.  Another prime example is the category anomalies seen in markets, such as tourism in Orlando, Digital Out of Home in Las Vegas, or the financial services and investment banking that stems from Manhattan, NYC. </p><p>Whatever the motive it is important to work with your M&A advisors to quantify the opportunity and ideally time it perfectly with lifecycle trends to ensure proper valuations are in play.  Today we are seeing a significant exodus from high tax states such as California. People that used to perform their duties at a major corporate campus are now encouraged to work from home and as such, talent is turning to more tax-friendly states to homestead. Today the State of California has seen more than $58B in adjusted income leave for lower or no tax states such as neighboring Nevada, Idaho or BIG Texas.  </p><p>The reason this matters for IT Services companies is that the decision-makers a