One quick way to expand your business is to make a strategic acquisition or to merge with another organization. An acquisition is to buy and end up controlling the business, while a merger is when you integrate your business with another and share control of the combined business

Benefits of a Merger or an Acquisition:

  • Obtaining quality staff or additional skills, knowledge of your industry
  • Accessing funds or valuable assets for new development
  • Accessing a wider customer base and increasing your market share
  • Diversifying your product lines, services and long-term prospects
  • Reducing your costs and overheads
  • Reducing competition. Organic growth that needs to be accelerated

Deciding if Your Business is Ready for an M & A

Before spending time and effort on an M & A exercise, we should:

  • Carry out a SWOT Analysis (strengths, weaknesses, opportunities and threats)
  • Assess external factors, especially the impact of economic climate
  • Ensure that we have - or have access to - the necessary funding

Assessing the Deal Objectively

Be clear about what you expect from the deal. Any merger or acquisition must be consistent with the strategic direction of your business. Once you have assessed your own business and its finances, you should be confident that the deal will produce a higher return than investing the same amount of money internally. If not, there are other reasons that would justify the deal.

Identify Target Companies for Merger or Acquisition

There are several ways DCM can help find the right firms for a merger or acquisition

  • 1. Making a Target Shortlist
  • 2. Approaching a Target Business
  • 3. Assessing the Target Business
  • 4. Value the Business

The Role of DCM

DCM will help you make the right choice, pay a reasonable price and avoid pitfalls during and after a deal. DCM can provide valuable guidance in areas such as valuing the business, financing the deal, terms and contracts, reviewing legal aspects and specialist valuation of specific areas of the business.