Tag Archives: mergers and acquisitions

Mergers and acquisitions and how it helps smaller companies

If you do won a small business, the thought of mergers and acquisitions might seem a very distant thought to you. If anything though, smaller companies should look very earnestly at mergers and acquisitions and look at it as a strategy for the company’s growth. Historically, it is something that only much larger companies have pursued, but there is no reason why small businesses can use it for their own benefit. Of course, it is only larger businesses that have benefited from the utilization of this strategy but that is no reason for you to ignore it.

Leveraging mergers and acquisitions can be one of the most important tools you learn as a growing businessman. Think of how Jerry Yang made a big mistake by ignoring Microsoft’s efforts to buy them out and you can understand why you should have a better handle on this facet of business. You might not get your teeth sunk into this any time soon, but you can always use it to improve the value of your company and rocket you along towards achieving your business objectives. The savviest of entrepreneurs have successfully looked at mergers and acquisitions and used it to benefit their small businesses. Here’s how you can use it to your benefit.

Become the hunted

As a publicly traded company, being targeted for a takeover is not always something desirable. But if you are a small business, this is a very sensible exit strategy and frees up resources that you can then apply elsewhere. By choosing to exit gracefully at the right time, you will benefit. But that’s only if you time it right.

Become the hunter

As one company acquires or merges with another, there will be talented staff that is let go off or that choose to walk away. Step in and woo them like you’ve never wooed anyone. They are fantastic business targets and they will know things about their former employers that could benefit you.

Fill in the blank spaces

Just as there are personnel opportunities when two companies merge, there are gaps in sales that must be bridged too. Customers might feel left out in all of this, so step in and be the knight in shining armor, making them switch to your business instead.

Desc: Smaller companies should look very earnestly at mergers and acquisitions and understand that it is a strategy for the company’s growth.

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