In crisis scenarios, it is common for companies from different industries to resort to it mergers and acquisitions Difficulties to overcome and guarantee a good growth rate. But this strategic decision must be carefully considered so that the consequences do not affect the future of the companies involved.
In this article, you will understand the scenario of mergers and acquisitions, in addition to knowing about the most relevant criteria for success in this decision.
Mergers and acquisitions are growing
2014 according to the technical examination Merrill Data Site475 mergers and acquisitions were announced in Latin America, for a total $123.7 billion. In 2013, although the number of transactions was higher, the value reached only $88.3 billion. The growth in traded securities was thus in the region of 40%.
Brazil, Chile and Mexico They are still the most important representatives of the region. The Brazilians retained the lead with 253 transactions for a total value of $48.7 Billion. Chile comes in second with 41 transactions worth $31.1 billion. Mexico follows with 67 deals totaling $20.1 billion.
And the trend is growth. An investigation conducted by the company Grant Thornton with more than 5,000 companies from 35 countries found that 33% of executives surveyed consider merger or acquisition strategy as an option growth plan of the business for the next three years.
The highest concentration of interested companies is in North America, where 45% of executives said they are positive about mergers and acquisitions. With 38% America Latin It took second place in the global ranking compiled by the management consultancy.
The use of structural synergies is the focus of mergers and acquisitions
For Heitor Ono, management consultant at thought leaderit is reasonable to expect growth through mergers or acquisitions as long as the structural synergies between the companies are clear and can be assessed in a move-in plan Previous.
“Structural synergies are profit opportunities of scale (understood as billing) and/or efficiency (gain in reading), which can only be achieved if there is a merger between companies. The combined effect must be greater than the strength of each,” explains Ono.
Between the advantages expected of entrepreneurs interested in mergers and acquisitions can be named:
- Lower running costs.
- Access to new markets.
- talent development.
- brand strengthening.
Find out if the deal is lucrative for your company
Deciding on the deal requires prior analysis and criteria. “We recommend entrepreneurs to only make the acquisition of a company if the strategic goals of the company (strategic planning goals) depend objectively and measurably on the characteristics of the target company,” says the specialist.
Therefore, it is advisable to understand in detail the possible benefits of a partnership and weigh all the consequences. “When evaluating the opportunity to buy a business, consider why, how and how much your business will benefit with the takeover‘ recommends Ono.
If the answers to these questions relate to the arguments described in the company’s strategic plan, the proposal can be accepted.
Please note that the transition process It takes time and resources, especially in the case of a merger when there is a need to work with a new brand.
Finally, it is worth remembering that there are such specialized advice in mergers and acquisitions. If you have any doubts about the viability of transactions and the consequences for the future of your business, contact the specialists.