2022: The Year of Growth by Acquisition?

I’ve been following public and private companies that benefited tremendously from COVID-19. Some saw more growth in a few quarters than they would have seen in five years without the pandemic. Last week I shared my view that these companies will shift from reactive to proactive in 2022.

These companies will focus on driving growth instead of managing it. Doing so with a larger revenue base and fewer macro tailwinds is more challenging. Expectations for many are high, which can mean patience is low. Results of evaluations of whether to build something or buy have likely shifted.

I foresee acquisitions playing a role in the 2022 strategy of companies that benefited from COVID and are flush with cash. The size of the acquisitions will vary. Some will be acqui-hires to get people in the company who can turbocharge initiatives with their expertise, while others will be traditional acquisitions of proven solutions with paying customers. Regardless of size, the reason for acquisitions will likely be to help achieve growth goals.

I’m curious about how this will play out and will be watching it closely.