Whenever you talk about mergers and acquisitions, most people think about corporate mega-deals, like Facebook buying WhatsApp.
But it’s just as relevant to small and medium sized businesses, as it is to big multi-nationals.
It seems to me that M&A is an underused instrument in the SME space, despite offering shareholders a clear route to solving very common business challenges.
I meet lots of business owners who achieved profitable growth some time ago, but their revenue plateaued at the £2-3M level. In other words, they hit a glass ceiling.
The top reasons for M&A are to increase the company’s value or to accelerate business growth.
And a well-executed merger or acquisition can literally double a company’s revenue overnight, whilst offering significant cost-savings. It can open doors to new markets, rapidly grow your customer base and attract bigger contracts.
Or it can simply neutralise an existential threat from a competitor by joining forces with them.
A tactical acquisition can strengthen your business in other ways too. It can provide access to new technology, IP and expertise, adding complementary skillsets and experience into the mix.
And all this can frequently be achieved without high levels of cost, hassle or debt. How? Simply by partnering with the right people…