The Role of Industry Relationships in Post-Acquisition Growth

When I buy a business, I know growth doesn’t happen in isolation. One of the most powerful but often underappreciated assets I look for is industry relationships. These include connections with suppliers, partners, trade associations, peers, and even competitors. Over time, I’ve learned that these relationships can be just as valuable as contracts or equipment.

Industry relationships provide credibility, open doors, and create opportunities for collaboration. They can accelerate growth after an acquisition or, if missing, make it harder to integrate and expand.

Why Industry Relationships Matter

Industry relationships matter because they:

• Strengthen vendor and supplier trust
• Create referral and partnership opportunities
• Provide insight into industry trends and best practices
• Protect against competitive threats through collaboration
• Build credibility with customers and stakeholders

When I acquire a company with strong industry ties, I know I’m buying more than revenue; I’m buying a seat at the table.

My Early Mistakes

In one acquisition, I underestimated how much the seller’s personal reputation anchored industry relationships. When they left, the company lost credibility with partners.

In another case, I ignored industry relationships entirely, focusing only on customers. After closing, I discovered vendors and associations were key to growth, but I had to start from scratch, building those ties.

Both mistakes taught me that industry relationships must be evaluated and transferred just like customer contracts.

How I Evaluate Industry Relationships

During diligence, I ask:

• What associations, groups, or partnerships does the company participate in?
• How strong are vendor and supplier relationships?
• Are there referral sources or strategic alliances in place?
• How much of the network is tied to the seller personally?
• How involved is the business in the broader industry community?

These questions reveal how embedded the company is in its ecosystem.

Signs of Strong Industry Relationships

• The business is respected by peers and competitors
• Vendors provide favorable terms because of trust
• The company receives referrals from industry partners
• Employees participate in trade events and associations
• Customers reference the company’s reputation in the industry

How I Strengthen Industry Relationships Post-Acquisition

After I buy a company, I invest in relationships by:

• Meeting key vendors and partners in person
• Joining trade associations and industry groups
• Building alliances with non-competing peers
• Hosting events or contributing thought leadership to the industry
• Investing in community and industry reputation

These steps position the business as a trusted leader instead of an isolated operator.

Why Industry Relationships Impact Valuation

A company with strong industry ties is worth more because it has stability, credibility, and growth potential. Buyers like me discount businesses that are isolated or overly dependent on the seller’s personal network.

Final Thoughts

I’ve learned that industry relationships are one of the hidden drivers of post-acquisition growth. They provide credibility, opportunities, and protection.

That’s why I evaluate them during diligence and strengthen them after closing. Because in the end, businesses don’t grow in isolation; they grow within industries, and those industries are powered by relationships.

I continue sharing my acquisition strategies and lessons at DrConnorRobertson.com, where I document the frameworks I use to unlock growth beyond the numbers.