Don’t Buy What You Already Own

If you’re considering an acquisition to help grow your company, look for deals that offer complementary expertise, advises John M. Cook, CEO of The Profit Recovery Group, an Atlanta-based company that provides recovery audit services.

When Cook purchased The Profit Recovery Group in 1991, it was making about $5 million in annual sales. That figure grew to $202.8 million in 1998, with $351 million expected last year, putting The Profit Recovery Group on Fortune’s list of fastest-growing companies.

Cook’s shopping strategy: Whether an acquisition is large or small, his goal is to “acquire skill sets and industry knowledge of industries or services that I’m currently not in.”

Writer: TJ Becker