Business Mergers & Acquisitions Explained
In the commercial world, you will find that business mergers and acquisitions take place frequently. There are some people are not sure on what a business merger or an acquisition is. The business merger involves two businesses. They come together and combine the business entities to form a new system. In fact, the past years and decades have witnessed a series of business mergers and acquisitions among business names. An example of a well-known business merger in the USA was Glaxo Welcome and Smith Kline Beecham. When the companies were merged, the famous Glaxo Smith Kline was born and its stock was reissued in the new name. A business acquisition is a procurement. This refers to a takeover of another company with the business that has been acquired ceasing to exist.
When business owners decide on business mergers and acquisitions, they often need the expert counsel and counsel of skilled experts like John Binkley- the CEO of Generational Equity- an esteemed business merger and acquisition intermediary firm in North America. The John Binkley Generational Equity team are guides and mentors to business owners interested in business mergers and acquisitions. He states that there are several reasons why a business decides to get into a merger or an acquisition. In one example, when the business decides to combine with another business, it sees a unique opportunity to enter a wider market especially if the combining businesses are situated in separate geographical locations.
The same also applies to a company acquisition however most of the time the company that is acquired ceases to exist and this results in severe loss of jobs. The ordeal is made worse with the present employees of the company finding it hard to squeeze into the new corporate environment if they are hired. Globalization is the driving factor behind business mergers and acquisitions. The consumer market tends to become wider and business operations expand to a very large extent. There are financial gains for both the businesses in the mergers.
The John Binkley Generational Equity team states that you need to do a very good job in first understanding the finance of a business if you are looking at business mergers and acquisitions as a business owner. It is also critical for you to look into the culture of the targeted company and check if it will merge with your own corporate culture. John Binkley says that most of the time business owners fail to see this salient aspect. This is the reason why most business acquisitions fail as the corporate culture of the seller is different from the corporate culture of the buyer.
Generational Equity helps business owners understand how mergers and acquisitions work. They give them the guidance and the mentoring required. They also check the value of the business and advise the business owner on what is the right time to sell the business to get the best profitable deals. The professionals here also conduct regular seminars and workshops to help business owners the modus operandi of business mergers and acquisitions too!