By Ben Chernoff, Partner at Davis Grant
The past year has seen the formation of many new tech firms in the UK – with the nation now a leader in Europe in several fields.
For entrepreneurs, the ultimate goal for their company may differ depending on their aspirations and plans.
For some a quick exit so they can move on to future projects may be key, while for others they may hope to grow their own business over time.
However, scaling up a business can be challenging and costly, especially when looking to break into new areas or markets that are highly competitive.
Scaling up often requires the purchase of new equipment, larger premises or the hiring of top talent, all of which can be costly.
Instead, many businesses look for a ready-made solution, by acquiring or merging with another business to expand their operations.
Despite the difficult economic situation that the world currently faces, there has perhaps never been a better opportunity to seek out a merger or acquisition.
At this time, many business owners are looking at ways to exit their business, while the value of some companies has dipped substantially as a result of financial difficulties or challenges such as Brexit.
By acquiring or merging with these businesses it may be possible to purchase the equipment and premises you need at a lower cost, while also acquiring staff members with establishing connections in your target market.
Acquiring a new business requires careful due diligence. After all, you don’t want to acquire a company that is heavily indebted or struggling with complex issues that could weaken your wider operations.
During an acquisition, it may also be necessary for you to seek out finance to assist you with funding the transaction.
Nevertheless, with the right professional advice, a merger or acquisition can be a great way to rapidly grow your company, with minimal effort. To find out how we can help you with an acquisition or merger, please contact us.