Select Page

Determining if M&A is a Smart Business Move

Across a wide array of industries on a national scale, it is important to re evaluate your company’s growth plan to see if adding a merger or acquisition is the best decision at this venture in your business. As mergers and acquisitions are on the rise, with over four hundred and seventy eight M&A transactions completed in 2015 alone.

The first step to holistically analyze whether or not a merger or acquisition is right for your company at this stage is to utilize a certain level of critical thinking. Even though other issues or obstacles may hinder a M&A from occurring in your business, one salient component before moving to the next step is to have an open discussion with your management team.

If your management team is aligned with the change and the majority of upper management officials strongly believe this is the right decision to foster profitable growth, this may be the best option.

If you happen to have to resources or time, another useful step in this process is to collaborate with a business consultant to determine whether or not if this venture makes sense for your company at this point in time. Examining assets, performance measures and other factors can offer a more well-rounded view of how the environment can change with this new venture.

Moreover, consulting a M&A specialist can also offer insight to various factors such as potential risks or weaknesses that could develop moving forward in the development process. Creating an effective, informative IT system is absolutely essential when analyzing data that reflects actual performance.

In terms of integration, this stage in the process actually represents a phase when many, if not most of the deals fail. Similar to any other business deal initiating some kind of internal change, crafting a transition plan will help a range of areas from accounting processes to different changes within employee training.

Since this specific transaction will produce internal change within the company, preparing for employee training along with other adaptations is a great way to most effectively handle this.

Although adding a merger or acquisition to your business can result in many positive changes such as increasing global reach and fostering the development of more customer relationships, conducting proper research to determine if this change is a good option is absolutely essential.