In the current global challenging environment, it is often advocated that sometimes the only way to achieve swift growth is to acquire or merge with an existing business. Acquisition strategies are undertaken for a variety of reasons, some which may be as follows:
- Bargaining power for bigger projects;
- Increase buying power with suppliers, contractor, dealer or merchant;
- Achieve consolidation of supply or certain markets;
- Acquire a distribution or similar network for an existing product line; and/or
- Reduce risk through product diversification of some kinds.
Whatever the underlying reasons, the one thing that all acquisition strategies have in common is an aspiration to reinforce and strengthen the existing business.
Mergers and acquisitions necessitate cautious planning if a successful outcome is to be achieved.
At McMillan Woods, our advisory team works closely together with our clients with the view to assist from start to finish at every stage of the process, namely:
- Develop and implement acquisition strategies;
- Identify suitable targets – either in the home country or overseas;
- Research and initiate discussion with potential targets; and
- To put together a structure, negotiate and close the deal expeditiously.