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Commercial Real Estate – Growth through business acquisitions

Posted on: November 24th, 2015 by RWS Dev Master No Comments

If you are a small or mid-size company, acquiring new business acquisitions may be a good option for you, if you are looking to grow your company. Some may believe business acquisitions are just reserved for larger companies, but this is not always the case.  Many smaller businesses hesitate to take that leap into acquisitions simply because they may not realize that it can work successfully as a means to grow their company.

Strong evaluation of the business to be acquired is necessary in order to determine if combining both companies will make the company stronger than remaining standalone. Business owners must recognize the potential of such a merger and have a formulated plan of how both companies will benefit each other.

Two important points in determining a successful acquisition:

  1. Growth potential for both companies – looking at the growth potential of the company after the merger with many opportunities present that were not available beforehand, can be an exciting benefit of mergers. The purpose of some acquisitions is to search out companies who haven’t reached their full growth potential, allowing the merger with another company to fully realize their growth potential and the opportunity to grow larger.
  2. Cost savings from restructuring – combining companies may involve restructuring both of them with an opportunity to reduce total staff if specific departments have duties shared. There will be a definite cost saving in reducing your number of staff or having not to increase the staff, operating with the staff you already have.

The object of any business acquisition is to make both companies competitively stronger. The acquiring company is buying assets and at the same time it acquires the talents of the management team in place, which allows both companies to utilize each other’s talents. This combined effort will result in a stronger and more successful company.

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