Merger & acquisition are considered the same terms. In fact, they have different meanings. A merger occurs when 2 companies consolidate and create a new company. Besides, acquisition occurs when a company takes over another entity.
If you want to expand your business by merger or acquisition, you have to determine the right strategy. Find out various strategies you can apply in your business.
Merger & Acquisition Strategies
If you want to maximize potential business growth after conducting mergers and acquisitions, you need to create merger & acquisition planning to determine the right strategy.
Here is a brief explanation of the strategies.
1. Vertical Strategy
Two or more companies pursue vertical integration to control various supply chain stages. It means it combines two companies that may not be competitors but are in the same supply chain.
This strategy can improve efficiency, save costs, and reduce dependency on external partners.
2. Horizontal Strategy
Horizontal integration involves the consolidation of two companies that run the same industry. Merging or acquiring competitors can increase your market share and reduce competition.
3. Conglomerate Strategy
It is the process of merging two companies that run different industries. After merging, they continued running their business as usual.
In addition, the benefits of this strategy are higher revenue, larger market share, and business diversification.
4. Product Extension or Diversification
It is acquiring companies that produce different products for different segments. So, this strategy helps you mitigate the risks of relying on a single product.
Hire a Merger and Acquisition Consultant from Central Insight
Do you want to expand your business and take it to the next level? Before acquiring new companies, you need to talk to our consultant.
Central Insight offers experienced merger & acquisition analysts and consultants to streamline your business acquisition. Our analyst will suggest the best strategy and review the target company.
We focus on planning and assisting you in merger and acquisition deals so you can achieve long-term growth in your business.
Are you ready to expand your market and increase your revenue? Do not hesitate to talk with our merger & acquisition consultant. Contact our client support by phone or complete this form to schedule a consultation.