All companies strive for growth and expansion. In general, there are two ways that a business can grow, either through internal growth or through external expansion. Internal growth is driven by the company's regular growth trajectory, whether through adoption of new technologies, asset acquisitions, better supply chain management or new product lines.
Today, companies often need time to get results. Another growth opportunity is to consider the possibility of corporate restructuring. This can be achieved through various types of corporate actions such as mergers and acquisitions. You can browse simplyhrinc.com/mergers-acquisitions/ to gather more information about the best merger and acquisitions consultant in Atlanta.
External growth paths are popular with companies around the world as they help break down trade barriers and raise capital in different countries.
What is a merger or acquisition?
A merger or acquisition is one of the most significant corporate events for a company, a process forever etched in its history. In an atmosphere of increasing competition, this strategy is generally carried out by both small and large companies.
The intent behind such a move or decision is unique to each company, but is based on the principle of creating more value (post-merger) than it costs each company individually.
The added value created through the merger or acquisition process is called synergy. As simple as it sounds, the whole process of mergers, acquisitions to create synergies (financial gain) is scary.