Growing your company through mergers or acquisitions can provide a tremendous boost to business, but isn’t something to take lightly.
You have to consider how you want the organization to grow When you start identifying targets, consider what sort of operational challenges you will face. We call that smart growth — what should an organization look like for the short-term and the long-term.
Before considering growing your business through a merger or acquisition, what should a business owner think about?
At the end of the day, you have to know what your goals for the merger or acquisition are. Will the target company be an add-on or tuck-in to an existing segment of your Business? The bottom line is to understand the who, what, when, where and why of the potential acquisition or merger before you start the process.
Although often overlooked, the ‘where’ is actually just as important as the other questions. Acquiring or merging with companies in different parts of the country poses specific operational challenges, not the least of which is banking. With whom should the company bank? There are many large national banks now, but that wasn’t the case 10 years ago. If one of the involved company’s banks does not have a presence in the other company’s geographic area, then simple operational issues can become a challenge.
Click here to read more ways to grow your business through mergers and acquisitions and post your question below or contact our Transaction Advisory Services Group at 440-449-6800.