The main reasons for an acquisition or merger are usually associated with one or more of the following:-
- Obtaining quality staff with additional skills, knowledge of the industry / sector and other market place intelligence
- Accessing funds or valuable assets for new development; given that better production or distribution facilities are often less expensive to buy than to build
- Kick-starting a process for improving business performance
- Accessing a wider customer base and increasing market share - e.g. through acquired distribution channels and systems of the target company
- Diversification of the products, services and enhanced long-term prospects
- Reducing costs and overheads
- Reducing competition
- Acquiring new intellectual property, products or services - rather than developing these in-house
- Accelerating organic growth.
- preliminary steps to determine if an organisation is ready to undertake merger / acquisition activity
identification of a target organisation(s)
engagement of the target company / companies
planning for merger / acquisition
merger / acquisition implementation
post-merger / acquisition integration activity
Mergers and acquisitions invariably create uncertainty amongst the entire work-force at all levels in both (or all) organisations involved.
Consequently, it is essential to have a good communication programme in place throughout any merger / acquisition activity.
If you wish to bounce any concerns off us then please do make contact.