In today’s business climate, it can be difficult for businesses to increase their revenue organically thanks to the UK’s slow-paced economic growth. This is particularly true for small and medium-sized enterprises (SMEs), whose resources are even more limited compared to national and international corporations.
Although every acquisition is inherently different in nature, the overarching benefits are consistent. Acquisitions are ultimately quicker, cheaper and far less risky for SMEs compared to traditional methods of growth such as marketing and sales efforts. For many small businesses, acquisitions can play a crucial role in determining their commercial success and, ultimately, survival.
The main benefits SMEs can enjoy following an acquisition include:
- Broaden existing service or product offering
- Increase market share
- Expand workforce
- Instant economies of scale
How to manage the process
- Strategically decide if an acquisition is right for you
- Strategically target the market
- Manage reputation during the process
- Manage the integration of corporate cultures
By Stuart Davies, Managing Director of TSW Training