Hey! To help you get your questions answered quickly, I created this new mini-post series all about Squarespace and Biz tips. Blogs in the mini-series will be shorter and sometimes related to a Freebie to help you get some answers to your questions. Ready to learn more today about the Merger & Acquisition options you have as a business owner?

Last week a client asked me how he could grow faster. I suggested a strategic partnership with one or more businesses that can bring him a larger volume of clients in return for lower rates… but we could also look for a merger or an acquisition. Here are the two options you can also consider:

Merger

A merger occurs when two separate entities combine forces to create a new, joint organization.

Mergers are considered to be a more friendly corporate strategy, and this is because they are voluntary and mutually beneficial for both companies involved.

Businesses may decide to pick this strategy to increase market share, exploit existing synergies, or expand the product offering.

Acquisition

An acquisition refers to the takeover of one entity by another.

Businesses acquire other businesses for various reasons, and they may seek more significant market share, cost reductions, new niche offerings, increased synergy, or diversification.

In the case of an acquisition, one of the first questions is to know if you have the money to proceed with this acquisition. And if not, if you can get the funding, you need to do it.

Most M&A can take a long period from inception through consummation; a period of 4 to 6 months is not uncommon.

Have you ever thought about a merger or an acquisition?

I’d love to read your strategy!

xox