July 9, 2014

Considering an acquisition? Now may be a great time

Businesses that are seeking to grow and become bigger players in the market often make a merger or business acquisition to help accomplish their goals. Whether it's to gain access to valuable technology or a talented team, companies benefit from these deals in many ways, and large corporations are often on the lookout for the deal that will set them ahead of the game. 

According to an article in CNN Money, as of this past June, Dealogic reported that there had been $786 billion in the U.S. in acquisitions and mergers so far in 2014. As the article details, this figure is larger than what has been reported in recent years. 

The article goes on to explain that at the present time, companies have more money on hand, and interest rates have been low, making it a good time to make these kinds of investments. 

An additional reason cited for the increase in acquisitions is that stock prices have been inflated so companies have been looking for another way to grow. They see mergers and acquisitions as opportunities to accomplish this growth. 

With the current climate, many companies may be looking to make an acquisition. If your company is approached with a merger or acquisition deal, there are many factors to take into consideration before deciding to move ahead. 

As we recently discussed on this blog, an important question is whether your company is ready to be acquired. A deal will have ramifications that go beyond financial gain. Personal considerations and a weighing of expectations will be necessary before making the decision to merge or be acquired. Once you do, your company will be in different hands, and this could take some adjusting to.

If you're considering an acquisition deal, an experienced M&A advisor can help you come up with a sound strategy.