Top Menu

To Acquire, Or Not To Acquire

Mergers and acquisitions often play a key role in a company’s ongoing growth-planning process. It may be more efficient to achieve the objectives by buying assets and resources needed for growth.


A growing company considering an acquisition should always begin with an acquisition plan that identifies the specific objectives of the transaction and the criteria to be applied in analysing a potential target company.

Why?

  • Are you convinced that growth via acquisition makes sense compared to other forms of growth strategies (internal expansion, joint ventures, franchising, licensing)
  • Are you really enhancing our shareholder value and competitive position?

Analyse:

  • What are the synergies and efficiency effect with regard to production and manufacturing, research and development, management or marketing and distribution?
  • Does the deal provide growth and opportunities for your staff and retain talent?
  • Does it add to your income streams?
  • Does it achieve certain production and distribution economies of scale ?
  • Does it strengthen key business areas, such as research and development or marketing?
  • Does it protect trademarks and gain recognition in the marketplace
  • Are the products and services superior?
  • Does it penetrate new geographic target markets?
  • With your companies skill set , can you grow the target company to the next stage
  • Does it achieve greater economies of scale in production, distribution, sales?
  • Does it help acquiring certain patents, copyrights, trade secrets or other intangible assets which otherwise would not be available to you?

 

No comments yet.

Leave a Reply