Mergers and Acquisitions (M&A)

As markets become increasingly saturated, one way in which organisations can grow rapidly is through a Merger & Acquisition (M&A) exercise. However Mergers and Acquisitions (M&A) initiatives are often complex and come with many potential pitfalls.

Organisations looking to grow via a M&A exercise may face certain challenges including:

Lack of expertise in developing a sound M&A strategy.
Lack of relevant expertise in carrying out required due diligence work.
Failure to plan effectively and thus unable to fully reap the benefits of the M&A exercise.
Not recognizing the importance of a change & transition management plan as part of the post-merger integration process.

Although there can be many perils in a Merger & Acquisition (M&A) exercise, the high side is that there are numerous benefits from such an initiative including:

Economies of Scale with Increased access to capital, lower costs as a result of higher volume and a greater bargaining power with suppliers/distributors.
Economies of Scope that can be very challenging to achieve via organic growth.
Synergies in Mergers and Acquisitions with potential larger product/service offerings.
Increased Market Share via acquiring other competitors as a bid to increase geographical footprint.
Diversification of Risk as acquiring other businesses can help spread risk across various revenue streams instead of just focusing on one.
Quicker Strategy Implementation where a M&A exercise can be much faster to enter a certain targeted market versus starting/growing organically in that new market.

Find out our rolein overcoming numerous business challenges

Find out our role
in overcoming numerous business challenges