blog > Acquire and Recap—All in One Strategic Plan
Acquire and Recap—All in One Strategic Plan
by Mark Goodale
How to keep options open for both acquisitive growth and external recapitalization.

Acquire and Recap—All in One Strategic Plan
Strategic planning for AE firms isn’t just about mapping out the future; it’s about juggling big aspirations, real-world goals, and market realities. Add acquisitive growth and the potential for external recapitalization to the mix, and things get even trickier. Now you’ve got to navigate a path that keeps your options open without tipping your hand too early—especially if you’re not ready to talk recapitalization with the broader team just yet.
The dilemma—growth meets recapitalization
If you’re eyeing acquisitions, chances are you’re thinking about growing capabilities, expanding into new markets, or grabbing more market share. At the same time, you might be considering external recapitalization—whether it’s bringing in private equity, merging with a larger player, or selling a stake in your firm. Recapitalization can fund growth, reward stakeholders, or tackle succession planning.
The challenge? These two strategies can pull you in opposite directions. Acquisitive growth calls for investments in integration, culture-building, and operational scalability. Recapitalization, on the other hand, requires rock-solid financials, stability, and a compelling value proposition. The key is finding a way to tackle both without losing focus—or letting the team know too much too soon.
Why curb appeal matters
Think of your firm like a house you’re prepping to sell. Curb appeal—the first impression—is what draws potential buyers in. For an AE firm, curb appeal is all about your operational performance, financial health, leadership strength, and market positioning. Strategic planning is your chance to boost that curb appeal, ensuring your firm looks its best to both investors and acquisition targets. And you can do it without spilling the beans about recapitalization, should you end up taking that path.
The steps to seamlessly blending acquisitive growth and recapitalization in your strategic planning process include:
1. Getting clear on your long-term vision
Start with the big picture. Investors and acquirers want a firm with a sense of purpose, clear goals, and a sustainable growth plan. Lay it out in your strategic plan:
- What markets and services do you dominate?
- Where are you headed—new geographies, bigger clients, market leadership?
- How do innovation and client focus drive your future?
By tying acquisitions to this vision, you’re showing a cohesive plan that resonates with both your team and potential investors.
2. Sharpen your financial health
Curb appeal starts with strong numbers. Build financial health into your plan by:
- Boosting profit margins and cash flow
- Trimming inefficiencies and optimizing operations
- Diversifying your portfolio to avoid over-reliance on one sector or client
Not only does this prep you for recapitalization, but it also creates the runway you’ll need for acquisitions.
3. Strengthen leadership and culture
Let’s face it: Acquisitions live or die on culture and leadership. Make sure your plan emphasizes:
- Building a strong, cohesive leadership team
- Promoting a culture that can absorb and integrate acquisitions
- Investing in leadership development to show you’ve got stability and depth
This approach gives both your team and outside investors confidence in your ability to manage growth.
4. Create a killer M&A playbook
Acquisitive growth works best with a solid playbook. Outline:
- Criteria for acquisitions—size, geography, market fit
- Integration frameworks to blend culture, operations, and finances
- Metrics to track acquisition success over time
Having this recipe in place not only speeds up your growth but also signals discipline to potential investors.
5. Differentiate with innovation
Stand out in the market by showing off your unique strengths. Your plan should highlight:
- What makes you different—expertise, processes, or tech
- How you’re embracing trends such as sustainability or digital transformation
- Investments in proprietary tools or intellectual property
These differentiators set you apart from rivals, making you more attractive for both acquisitions and recapitalization.
6. Double down on client relationships
Your clients and reputation drive value. Build your plan around:
- Deepening key client relationships
- Expanding services for existing clients to increase revenue
- Securing high-value, long-term projects to anchor your pipeline
These steps position you as a leader in your markets and reassure investors about stability.
Keeping recapitalization plans under wraps
Not ready to announce recapitalization? No problem. Focus your strategic goals on what’s universal:
- Scalability: Build systems, processes, and teams that support growth.
- Resilience: Strengthen financial stability and risk management.
- Value creation: Invest in operational excellence, client satisfaction, and differentiation.
Frame these as part of your growth strategy—nobody needs to know the rest yet.
Measure and adjust as you go
Strategic planning isn’t static. It’s fluid. Use metrics to stay on track and pivot when needed. Consider tracking:
- Revenue growth and client diversification
- Profitability (EBITDA margins, cash flow)
- Employee engagement and leadership development
- Acquisition integration success rates
Regular reviews will keep you focused and flexible.
Build flexibility into your plan
Life happens, markets shift, and strategies evolve. Your plan should, too. Stay agile by:
- Exploring multiple scenarios for growth and recapitalization
- Leaning on trusted advisors to refine and pursue your options
- Sharing high-level priorities with your team while keeping sensitive details close to the vest until the time is right
Strategic planning with vision
Balancing growth and recapitalization isn’t easy, but it’s doable. Focus on universal value drivers such as financial strength, leadership, and differentiation. Use strategic planning to boost your firm’s curb appeal, paving the way for acquisitions or recapitalization—whichever you choose.
In the end, it’s about positioning your firm for long-term success while keeping your options open. And that’s what great leadership is all about.
Are you getting ready to start your firm’s strategic planning process? Call/Text Mark Goodale at 508.254.3914 or email [email protected].
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