The key motivation for M&A is the need to grow the business. When organic growth initiatives produce limited results or appear to be slow in yielding the desired growth rate, companies choose the M&A route. M&A is an easier route to expand in foreign markets where the entry barriers are tall walls to scale for companies that are looking for quicker market access. Barriers could be in the form of licenses, government policies, patents, technological knowhow, or even access to distribution network or suppliers. It is easier to establish a presence through acquisition than to start from the scratch.
M&A paves way for companies to achieve synergies; through M&A, businesses achieve efficiency, cost effectiveness and gain competitiveness through complementing strengths. In some cases, M&A can take place among two unrelated businesses leading to the acquirer to diversify its businesses or a company may acquire a related business to increase its strategic focus. Companies at times, acquire their suppliers, this helps them to enhance supply chain efficiency and achieve cost and quality control. The acquirer can thus sharpen its competitiveness and achieve business growth. Some businesses buyout competition in the market to consolidate their position or to eliminate the competition to establish their monopoly.
The pace of today’s M&A activity demands decision-makers make the right moves confidently and swiftly to avoid missing opportunities. This requires clarity and an in-depth understanding of the deal – both of which can be difficult to achieve as the deal-making environment becomes more complex.
Our consortium partners and experts understand the challenges on both sides of the transaction and recognize the need for both parties to drive maximum deal value. Our experts in M&A professionals are forward-looking specialists with vast deal experience, a broad range of skills and deep industry expertise. We create holistic solutions that will help our clients confidently navigate the complexities of buying and selling a business, identifying the key risks and rewards throughout the deal cycle.