In the constantly changing economic climate, there are always opportunities for stronger businesses to consider expanding rapidly through acquisition and mergers.

Outlined below are some key reasons for acquiring another business:

1. Adding a new service or product to your existing range.

2. Penetration into a new market place.

3. Creating a larger presence in your current market place.

4. Increasing market share and gaining critical mass.

5. Buying more expertise.

6. Buying more people generally.

7. Buying other resources available in other companies.

8. Reinforcing industry dominance (if you have such).

9. To improve profitability.

Where businesses find that there are opportunities to increase 3 or 4 of the above, then it makes strategic sense to allocate resources to implement such an acquisition.

When looking for businesses that may be interested in being bought, consider the following common reasons:

1. Retirement looming

2. A lack of any succession plan

3. Staffing problems

4. Lack of leadership

5. Lack of capital investment

6. Decreasing profitability

7. Decreasing market share

8. Decreasing critical mass

9. Decreasing image within the market place

When you combine the positive attributes of ‘reasons to acquire’ against the negative aspects of businesses interested in being bought, your search will often arrive at a natural acquisition target from which business can be done successfully for both parties.

Please let me know if you are interested in discussing this further, I’d be happy to help you grow your business, expand your market reach, and increase your profits.

Email gds@gordonsknight.co.uk or phone 0208 241 3000.