Mergers & Acquisitions

Mergers involve the combination of two companies into a new entity.

Acquisitions involve one company purchasing and absorbing another.

Both approaches are often used for strategic growth, market expansion, or consolidation. Mergers and acquisitions require thoughtful planning and evaluation to ensure successful transactions.

Why might a business consider a merger or acquisition?

• Faster growth: Joining forces with another company can quickly boost revenue, customers, and market share—without waiting years for organic growth.
• New markets: It's an easier way to expand into new regions or reach customer groups that might be tough to access on your own.
• Cost savings: Combining operations often reduces duplicate expenses in areas like administration or facilities, while also giving the new company stronger buying power.
• Fresh capabilities: A merger can bring in new technology, patents, processes, or skilled employees—without the time and expense of building them from scratch.
• Stronger competitiveness: Acquiring or merging with a competitor can consolidate market power and help the combined company stand out more effectively.
• Diversification: Partnering with a business in a complementary market can spread out revenue streams and reduce reliance on a single source.
• Smooth transitions: For owners nearing retirement, selling to an acquirer can secure business continuity and ensure leadership changes happen seamlessly.

Helpful Hint: More information on Mergers and Acquisitions can be found at US Small Business Administration (SBA).