Merger & Acquisition Services
For most businesses, organic growth is the preferred approach. However, this can be a frustrating and often long process to get to the size where you are able to successfully match the best competitors in your industry sector. The alternative is to pursue mergers and acquisitions with similar businesses to your own that ideally have a good culture fit. However, by undertaking Mergers & Acquisitions will require a business valuation, specialist skills and experience that normally will stretch the resources and management skills of the typical SME business owner.
Mergers & Acquisitions (M&A) are used by organisations for the purpose of expanding their operations and increasing their profitability. In the SME market sector most M&A activities occurs in a consensual setting where staff or owners from the target organisation help those from the purchaser in a due diligence process to establish an agreed business valuation to ensure that the deal is beneficial to both parties.
We offer a range of M&A experience gained over many years in Sydney, Melbourne and Brisbane across public and private organisations. Our experienced team will work with our partners to identify potential merger and acquisition opportunities for your organisation and assist with any business valuation requirements.
We have found over many years that M&A activities can add considerable shareholder value providing the program is researched with adequate due diligence and a thorough understanding of why it is happening.
The major reasons for mergers and acquisitions include:
Economies of scale: This refers to the fact that the combined company can often reduce duplicate departments or operations, lowering the costs of the company relative to theoretically the same revenue stream, thus increasing profitability
Increased revenue/Increased Market Share: This reason assumes that the company will be acquiring a competitor that increases the price competitiveness and resources to improve the customer service experience leading to even faster growth in sales
Cross selling: For example, a manufacturer can acquire and sell complementary products
Synergy: Better use of complementary resources
Taxes: A profitable company can buy a loss maker to use the target’s tax write-offs
Geographical or other diversification: This is designed to smooth the earnings results of a company, making the business more attractive to investors
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Business advice and mentoring services without any hidden agendas
Contact us today to find out how to generate growth and maximise the value of your business.