Mergers and Acquisitions, just for the big guys? I don’t think so!
I see a number of small businesses that struggle with growing their business organically, and I ask myself how many of them have considered a merger or an acquisition of a similar business.
Merging or acquiring another business is obviously a much faster route than organic growth, and hopefully by bringing the two businesses together you will be able to extract synergies. You know 2+2 = more than 4.
So if Mergers and Acquisitions are such a good way to grow businesses, why do smaller businesses not utilize this technique more often to grow their businesses? I believe that it is because when companies merge or acquire other businesses, the ownership structure is generally impacted, and naturally small business owners are concerned about giving up part of the company they have built.
However, it may be that it makes sense for you to take a smaller percentage of a bigger pie. You need to do the math and be honest about whether you are willing to relinquish some control.
My message is that you should at least consider Mergers and Acquisitions as part of your ongoing strategic evaluations.
Contact us if you need assistance to evaluate your strategic alternatives. We have the experience, we care and we are there to help you.