Merger and Acquisition: How Can I Benefit From It?

After many sleepless nights of research and contemplation, you finally started your own company on Day 1. Time fast forward, you’ve nurtured your company from a startup to a growing business, but new challenges have emerged. There is the cut-throat, market competition, limitations of resources, etc. Stimulating your company’s growth has been tougher and more complicated than ever. There is a need for you to change. What if you can turn these challenges into your advantages? One of the strategic steps you can consider is an M&A or Merger and Acquisition.

Merger and Acquisition is a powerful union of two companies consolidating each other in forming one new company or an acquisition of one company by the other. One analogy we can see M&A as is the marriage of two individuals. When two individuals finally say “I Do”, they become a union. And whatever the single person has, will be brought to the other during a marriage, and vice versa. In M&A, 1 company + 1 company= 1 new big company. How can you benefit from it? When you finally kiss the bride, let’s explore the potential benefits of an M&A, the windfall for the newly formed company:

1. Accelerated Growth

A company is a sum of all its investments, research, and resources. The same way with the other company. Because these two companies are already backed with their hard-earned industry expertise, reservoir of information and technologies, access to key talents and personalities, the newly formed one will have accelerated growth and jumpstart from scratch with even reduced costs.

2. Expanded Market Share

Each company holds certain market shares. When two companies M&A, the new venture will enjoy both markets already. And when this happens, there are larger opportunities for market revenue to happen.

3. Eliminated Direct Competition

In connection to expanded market share, as these two companies are now joining together, it eliminates direct competition. You may now divert your efforts to other considerations in the aggressive market, now excluding the company you considered as a competitor prior to the M&A deal.

4. Diversification of Portfolio

Through Merger & Acquisition, the new company booms into a larger entity with more and wider offering range. Conforming to this, risks are also spread into different revenue streams from the diverse products or services. There is less worry when one of these revenue streams fall flats or underperforms as the business has now several sources of income streams to back the operations and sustainability of the company. 

Like newlyweds embarking on a honeymoon, the unified companies enjoy a period of reaping rewards. Carefully select your best match out there and garner all these and more practical benefits. However, remember that entering an M&A is a form of commitment. And like any other forms of commitments, assess if it is high time for you to tie the knot.

If you still have not reached your decision for a Merger & Acquisition, Serial Scaler Zack Urlocker, who spent his career helping companies evolve, racking up more than $20 billion in shareholder returns along the way, and holds treasure trove of stories—successes, failures, and those make-or-break moments, is coming to BoS USA 2024 in Raleigh, 23-25 September to help those who are considering M&A in the near future.

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