The combining processes are a very commonly used tactics by various companies to initiate their growth. From the several procedures, the process of Acquisition is very popular, although it is often spoken of along with another process, Merger. Together both are known as M&A or Mergers and Acquisitions. Often mistaken to be the same thing, the merger and acquisition have their own distinctions and can be employed by any corporate firm as a single entity.
Acquisition in simple words would mean the ‘taking over’, i.e. when one company takes over or purchases another company. The acquiring can be of two types basically, acquisition of purchase and acquisition of consolidation. Either the shares or the assets of one company can be bought by another one. It should be remembered that this is not a reserved process particularly for the big fish of the corporate world. The middle and smaller businesses could also gain from it without any hesitation.
As a matter of fact, this is one of the best methods of growth for the mid and small scale firms, rather than increasing the cliental one customer at a time. The primary objective of an acquisition irrespective of how it is carried out is to enhance the value of the resulting company than its original form. Amit Raizada is the Chief Executive Officer of a Kansas City based private investment firm who knows every little detail about the mergers and acquisitions. This company known as Spectrum Business Ventures has been in function since the year 2002 that provides family offices, institutional investors and high net-worth the most compelling and complex business opportunities.
Economies of scale, enhanced market visibility and efficiencies are some of the positive outcomes of an acquisition process. This process enables the company to increase its cliental base without extra efforts as well as increase the value of the share holders. The external offerings and expansion of capabilities are also furthered through the execution of this process.
Now the since the strategic acquisition is an extremely complex corporate procedure, it is definitely vital to seek the help of experts in the field such as Amit Raizada who leads the company Spectrum Business Ventures . There are certain factors you need to consider before attempting a strategic acquisition:
- The Prosperity of your company – whether you have a small or a mid scale or a large business, you need make sure the financial status of your company is good. After you will need money to purchase something, and this case it is a company altogether.
- Your business model should be excellent – the model should have extraordinary strategic plans indicating the requirement of an acquisition.
- A strong management team – it will increase the strength of your acquisition, a team of people should be there as your strong hold who understand your business completely and exhibit your company’s culture always.
- Access to your Capital- this is probably the most important thing on the check list, unless and until you have the hard cash in hand you will not be able to carry out the process of strategic acquisition at all.