How should I prepare for a merger?

 

From an entrepreneurial point of view, there are 2 strategies you can try to follow successfully:

1.   You can go the way of high margins and occupy a narrow market in which large competitors cannot or don’t want to get involved.

2.   You can carve out a bigger and bigger market share, albeit with low margins. If you adopt the strategy of the biggest possible market share, you can grow organically, selling more and more as your competitors sell less. This path bears fruit only after a long time, and by that time you will have lost strength. But you can buy up your competitors. You can easily make a valuable ally from an unwanted competitor. This method, however, opens up certain risks.

During mergers and acquisitions always see to the following:

  • the right timing,
  • careful preparation of the project,
  • legal and tax due diligence with the aim of minimizing risks in the acquired or merged company, and
  • securing financing

We are ready to lend a helping hand during the acquisition of rival companies. Call us!

Want to know more? Contact us.