Buying a company is a common way to grow, to diversify risks when opportunities or threats are identified in the market, or to your business continuity. It is what is called an inorganic growth strategy. Through the purchase of companies, the acquiring company can achieve new sales channels, enter new markets or acquire innovations, capabilities, and key resources for its future prosperity.
The success of a business purchase operation depends largely on how the opportunity is structured, taking into account the resources of the companies, the legal and macroeconomic environment and the analysis of the competitive position of the buyer and the target company, too, therefore, the transaction design, the suitable purchase candidates selection and the target business valuation are essential stages that provide in-depth knowledge about the key aspects of the negotiation and the value creation of the transaction. This process often requires seasoned advice.
In the mid-term, success will depend on the effectiveness in the post-closing integration of the two companies, buyer and acquired, to achieve the business objectives outlined during the analysis and decision-making process.
A well-analyzed and structured business acquisition process is one of the ways to strengthen, grow your company, or give continuity to the company you built.