Mergers & Acquisitions

Acquiring a Business

When a strategic decision is made to acquire a business, it is imperative that it is being done for the right reasons. Scale is important but unless synergies can be realized, other alternatives should be considered. This could include a strategic alliance, a joint venture, joint marketing or purchasing or supply agreements and licensing or franchise agreements. In short, 1+1 should be significantly greater than 2 in order to proceed with an acquisition.

And if a decision to acquire a company is made, what is the minimum price the target would be willing to accept? Are there adequate financial resources to consummate the deal? One must also consider the corporate cultures of the target and the acquirer. Are they similar? Are they vastly different? If it's the latter, what is the post-merger integration strategy in order to realize the expected synergies?

These are some of the issues that must be addressed before commencing an acquisition. Aries can help to ensure your acquisition strategy is sound. Click here to see how.