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Evaluating Good Merger Targets |
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Thursday, 16 December 2010 |
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Merging with a company that complements your products and customer base eases competitive pressure, improves profits By: Steve Rosvold In addition to “knowing your customer” – a business mantra of the last decade - companies today must get to know their potential partners. With nearly every CEO I talk with, competitive pressure is driving their main initiatives. Reducing costs and increasing distribution channels are common initiatives for short term survival or profit growth. Frequently one of those initiatives is determining what companies would make a worthy partner; either through a merger, acquisition or some other joint benefit arrangement. Competitors, particularly in industries with margin pressure or slow sales growth, are often a logical choice to partner with. Although this column uses a manufacturing company example it’s equally applicable to service firms by substituting “service” where “product” has been used. Click below for the full article Evaluating Good Merger Targets
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