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Instant growth through mergers and acquisitions

As a business owner, one is however are always in search of how one can grow the business. One however  wants  to make more money and also in order to serve a larger customer base. The problem is thus  identifying the best way in order  to grow the business, and thus also doing so at a rapid pace.

Mergers and Acquisitions (M&A)  are considered as  a great way in order to grow business without however  having to wait years for the marketing and also sales strategy in order to pay off. When one however  needs  immediate growth for the business, this can thus  be the best option for one that thus provides the instant result. The primary goal of a company which is interested in a merger or acquisition is thus to secure an opportunity that will thus  either achieve the objective of growth or to provide an area of expansion that will thus add to the product/service line in a market that is thus currently not served by the company. The motivation behind this pursuit is thus  that the resulting combination of the products, key people, and the existing pipeline will however  allow the business in order  to operate in the  new markets and also offer new options to their existing market.
However , the purpose of this article is to give the reader an insight into the instant growth that takes place through mergers and acquisations.
The benefit to thus combining the business with another is thus  that in the process, one will however have the opportunity in order  to grow the business' sales immediately from the addition of the other business also .  And thus everything else being equal, the new "combination business" should thus however  have the potential in order to become even more profitable than the two businesses which are thus operating independently. This potential for the  increased profitability thus however comes as a direct result of both the  sales increases and also the  operational efficiencies (opportunities to reduce total costs) that thus accrue from combining the two businesses.
Obviously, selecting the right business is considered as  key to the success of the combination. The right business should however also have the elements that thus combine well with yours . One’s business and also  the other business should however also possess unique strengths that thus enhance the performance of however each other's contribution to thus the new combined business's bottom line. For example, if one combines  one’s business with either  one or more companies that thus provide the  products and services complementary to your’s , one would thus  have the potential in order to increase the total market share by:
       Selling the  old business's products and services thus to the other business's customer base.
       Providing the other business's products and also the services to the old business's customer base.
       Reducing the total costs by however implementing a combined effort, such as however using one set of marketing efforts thus  to the same target market and thus also sharing the "best practices," which will however enable the new combined business in order  to operate more efficiently than thus either of its two predecessors.
However Forming this kind of combination is thus  typically considered as  either a merger or an acquisition. When two or more businesses thus  merge, a new business entity must however  be created. This new entity thus  brings the two separate operations together however  as one new business. The two previously separate customer bases thus however become one, the operations of thus  both typically combine into a new one, and thus  the management and the  employees are however  assessed and also thus  sorted into a combined work force that's thus smaller than the sum of the old businesses, and also presumably more efficient as well.
Thus however In the case of a business acquisition, one business now however owns the other. Thus because  of the formal sale of one business to the other, the acquired business thus becomes, in effect, a subsidiary of the business which is thus doing the acquiring. This thus gives the acquiring business total control over both of  the operations and also the profits of the acquired business.
Whatever the form, the decision in order  to combine must thus also make financial sense for all the  parties. However In order for any kind of combination in order to come to fruition, the new entity must thus however  be greater than the sum of all the old parts. Furthermore, in the particular instance and also the  given  desire in order to bring the sons into the business, one will thus however  have the added burden of however  determining if the proposed new combined business can thus logically accommodate the sons' respective skills and also the experiences, as well as their salaries.

Pursuing the mergers and acquisitions thus does not come without any challenges. Combining the  two businesses thus  results in many new issues that thus did not exist before. This thus  includes: operating a company however  with a presence in the  multiple markets, a larger and also a more diverse customer base, also  a more complex product and the services portfolio, and also thus a high level of the  people and also operational complexity. Also, another issue is thus  the cost reduction goals can however  conflict with the revenue growth opportunities.

This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST SoftwareGST Return FilingGST Registration, Section 8 Company RegistrationNidhi Company RegistrationIEC RegistrationFssai LicenseFile ITR Online.

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