The essential management services for growing your business through the expansion phase by undertaking mergers & acquisitions will require specialist skills and experience that normally will stretch the resources and management skills of the typical SME business owner.

Mergers & Acquisitions (M&A) are used by organisations for the purpose of expanding their operations and increasing their profitability. In the SME market sector most M&A activities occurs in a consensual setting where staff or owners from the target organisation help those from the purchaser in a due diligence process to ensure that the deal is beneficial to both parties.

We have found over many years that M&A activities can add considerable shareholder value providing the program is researched with adequate due diligence and a thorough understanding of why it is happening. The major reasons for mergers and acquisitions include: 

• Economies of scale: This refers to the fact that the combined company can often reduce duplicate departments or operations, lowering the costs of the company relative to theoretically the same revenue stream, thus increasing profitability, 
• Increased revenue/Increased Market Share: This reason assumes that the company will be absorbing a competitor that increases the price competitiveness and resources to improve the customer service experience leading to even faster growth is sales, 
• Cross selling: For example, a manufacturer can acquire and sell complementary products,  
• Synergy: Better use of complementary resources,  
• Taxes: A profitable company can buy a loss maker to use the target's tax write-offs, and 
• Geographical or other diversification: This is designed to smooth the earnings results of a company, making the business more attractive to investors.    

Our experienced team will offer a range of M&A services and work with our partners to identify potential merger and acquisition opportunities for your organisation. These services cover:

• Review and extend your current business strategy, 
• Identification of suitable companies to compliment your organisation's strategic objectives including realistic market valuation parameters for both your organisation and the target organisation, 
• Preparation of documentation to commence negotiations leading to a Heads of Agreement, 
• Assistance with people skills assessments and identification of synergies to be derived from the M&A project,  
• Working with specialist legal and accounting services partners to undertake professional due diligence leading to a Sale or Merger Agreement with the target organisation, 
• Depending upon the final funding arrangements assist in the raising of debt and/or equity capital, and 
• Work with the Board and management team to deliver the agreed business plan.