Worsening economic conditions have hit businesses hard over the past twelve months and unless the climate improves drastically even tougher times lie ahead.
It is time for a return of the entrepreneurial spirit. Why not buck the trend by hitting the acquisitions trail this year? Growth by acquisition is a tried and trusted strategy that allows movement into brand new markets or an increase of existing market share at much more rapid rate than would be likely through organic growth.
Said Gerald Irwin of Sutton Coldfield based Licensed Insolvency Practitioners and Business Advisers, Irwin Insolvency “Companies hit the acquisitions trail for many reasons such as diversifying into new markets or acquiring new technology but whatever the reason it is important to focus on buying companies that tick all the boxes when it comes to satisfying strategic objectives. However, many acquisitions fail because the management teams find it difficult to integrate two businesses with different systems and cultures.”
Mr. Irwin warned that the current mergers and acquisitions market was particularly buoyant and valuations high. Certainly for those entrepreneurs seeking to acquire a profitable business rather than a turnaround opportunity they should expect to pay top dollar. However, by adopting the right strategy at an affordable price based on a well thought-out plan could well lead to a ‘marriage made in heaven’ and a very happy 2012 indeed.