If you wish to achieve growth you can do this by expanding your existing business; autonomous growth. However you can also do this by the strategic acquisition of another business. A strategic acquisition frequently occurs in order to increase market share. It may be that you wish to take over a direct competitor in order to increase your market share. You might also wish to consider acquiring a business outside your own branch because, for instance, the range of products would complement your own products.
A takeover is complex and intensive. It is advisable to bring in experts who can guide you. The following aspects, among others, play a role in taking over another business:
- Is your own business ready for a strategic acquisition?
- Which market do you wish to achieve growth in, and why?
- Why do you wish to acquire this particular party; are any alternatives available?
- Make sure you have a clear picture of the market, with its opportunities and its threats.
The proactive approach of Factor Corporate Finance is aimed at clearly identifying which factors are critical for you and the proposed acquisition, as quickly as possible. There must be a good business fit with the target business if the acquisition is going to be successful in the long term. This means more than just the business activities; such matters as business culture and market profile are also important. In practice this means that you will need to look at a large number of candidates, and that you will reject most of them, so that you will finally come to a deal with the most suitable business.