Mergers and Acquisitions
According to a study conducted by McKinsey, The first half of this year saw businesses spending more money on mergers and acquisitions than they have in the last 40 years. Why is that the case?
Perhaps it is a reaction to the economic trends of 2020, with some business owners deciding that they needed to cash out, regardless of the circumstances. In other cases, the chaotic nature of 2020 made for an opportune time for some business owners to merge or sell.
On the Buyer side, valuations have recovered in early 2021 to pre-pandemic levels, and one could conclude that bargain hunting is no longer an option.
Some of the most pressing issues include labor shortage, supply channel demands and cost pressure.
One of the more worthwhile tactics is to invest time and money into a growth strategy that lends itself to a strategic acquisition. When carefully crafted, a growth strategy offers:
- The ability to consolidate cost & grow the bottom line
- Grow the top line with add on customers and additional product lines / services.
There are applicable strategies for all industries and companies of varying size.
At CHV Group, we can offer assistance in developing a growth strategy and other valuable company assets as you gear up to make an exit! Allow us to focus on implementing these strategies while you focus on running your business!
