Mergers and Acquisitions - Part of Growth Strategy

 Mergers and acquisitions make ideal reasons in many situations. For example, perhaps an opportunity arises that necessitates immediate and decisive action. Perhaps a competitive threat forces a defensive move to become bigger and faster.

• Fills gaps in services 

When the market changes, external events occur, or new laws and regulations are enacted, it can cause a shortfall in a company's critical offerings. It's an excellent opportunity for a strategic alliance.

• Acquiring talent and intellectual property

Many industries are experiencing a shortfall of experienced professional personnel. A few examples include engineering, accounting, and cybersecurity.

IP is now actively bought and sold after being hidden and carefully guarded in the past.

For many companies, purchasing a company and its intellectual property is the fastest way to gain market dominance and put a stop to aggressive competition.

• Possibility of leveraging synergies

A strategic merger, when carried out as part of a well-planned growth strategy, can produce synergies that provide real value to both the acquired and the acquiring parties.

• New Business Model 

Many professional services firms bill by the hour.  Some businesses generate revenue through fixed fees or performance incentives.

The worth of an effective M&A growth strategy extends beyond monetary compensation.A merger is a brand-new kind of perk, like brokerage, insurance, or money management.

For more details on benefits of mergers and acquisitions, contact our team at info@valuqocapital.com