2018 M & A Reaches Record High First Quarter |
Posted: July 18, 2018 |
Global mergers and acquisition had a strong start in the first quarter of 2018. Data shows how the value of M&A deals increased globally as well as the average deals. A number of important factors have heightened chief executives’ confidence to take advantage of pursuing these dramatic ownership changes. This article discusses how businesses greatly benefit from M & A. Read on to learn more. Some of the most important reasons for this mergers and acquisitions are increased market power due to reduced competition, growth and diversification, synergy and clearer business focus. With the reduced administrative tasks, companies have a better opportunity to pay attention to things that will add value. Digitization is another smart way to improve a company’s value. Many large companies can take advantage of the fact that small companies can better embrace technology than big businesses can. Still, both can benefit from these M & A’s. Many companies continue to become more aggressive in taking strategic steps for a better future. Enlist the help of Geir Samdal and Kari Baervahr, managing partners in Ownomics. This leading business consultancy in Oslo helps business owners through the complicated process of ownership change. Their extensive experience increases a company’s value. They assist business owners with increased knowledge to improve ownership. For over 15 years, Geir and Kari have assisted business owners helping them increase company’s valuation.
Learn from this article why business owners consider M & A. You can also access free videos and guides to help you answer your questions. Read the whole article here. 2018 M & A Reaches Record High First QuarterWorldwide mergers and acquisitions were all time high at $ 1.2 billion for the first quarter of 2018. The US tax reform, along with the latest economic growth in Europe, has led companies to take strategic steps. This trend provides many opportunities for all business owners. The most common reasons for M & A's are:
Below we have described what this may mean to you as a business owner. Why do SMB owners consider merging?Small businesses can benefit greatly from finding a partner "upstream". This means that the owner of a smaller company is looking for a larger company to merge. The merged company typically gets a greater impact on the market. The owners of SMB can benefit greatly from M & A. The dependence of the owners becomes smaller. And senior owners can step down. Younger forces can escape. The company can continue to exist or integrate into a larger company. Another reason why a company may wish to merge "upstream" is that it can reduce administrative tasks. This will give management the opportunity to focus more on value-creating work. An example of this can be sales or more light-duty tasks that give more pleasure and meaning. Merger upstream gives smaller companies greater financial freedom and stability. This may be a good option for those who no longer wish to carry the entire responsibility alone. And not least, the ability to survive in an increasingly demanding market is strengthened. Many big companies are challenging today's pace of innovation. Smaller companies are often more innovative and specialized. The advantage of large companies is that they have their own currency through settlement in shares and good access to acquisition financing. The high number of mergers in the first quarter of 2018 is also a reflection of the fact that there are good times in the capital markets. The perhaps most common reason why larger companies will merge your growth in a desired market area. It takes time and costly to build a company from the start. Through a merger, the buyer will quickly get into the market. In this way, all current contacts, customers and resources are utilized for the merger company.
Read the whole article here: https://www.ownomics.com/2018-m-a-nar-rekord-hoyt-forste-kvartalet/
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