There are very specific reasons driving any decision to acquire another business…
…or to go down the merger route. But some of the additional benefits can be unintended.
So what can a merger or acquisition offer your business when done right?
> REVENUE. Access to new markets and customers can boost combined sales, more than either company could achieve on their own.
> TALENT. A stronger, more diverse leadership team and additional specialist capabilities.
> IP. Patents, trademarks and proprietary systems and processes which bolster competitiveness.
> COSTS. Operational efficiencies from eliminating duplication.
> INNOVATION. Combined R&D or product and service development spend, which can accelerate breakthroughs.
> FINANCIAL. Greater financial flexibility, capital resources and borrowing capability from merging balance sheets.
> CHANNEL. Expanded reach from leveraging each other’s established distribution and sales channels.
> SCALE. Greater negotiating power with suppliers, partners and customers, by virtue of scale.
> VALUATION. Exponential growth in valuation, through driving a higher valuation multiple.
Whether it’s a pure consolidation play or more of a strategic move, assessing potential synergies upfront is a critical part of maximising growth through M&A.
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