July 1, 2014

Etsy looks to expand with acquisition of A Little Market

For many companies, making an acquisition represents an opportunity to grow and expand their business. Whether it's to obtain new or complementary technologies, or to gain assets in the form of valuable talent, acquisitions can be used to give a business a competitive edge in the market and sometimes even eliminate competitors in the process.

Recently, Etsy, an online e-commerce retailer that allows users to sell their handmade and vintage goods, announced its acquisition of A Little Market, according to an article in Tech Crunch. A Little Market is an online market for handmade items. The company is based in Paris, which makes sense with Etsy's acquisition strategy since they already have a significant market in France. This is Etsy's biggest acquisition yet, according to the Wall Street Journal

"As we've focused on international growth, capitalizing on the strongest economies in the world has been a top priority. France is the fifth largest economy and seventh largest e-commerce market globally, and it is Etsy's strongest non-English market," Etsy said in a statement. 

Etsy is also looking to build up its markets in Canada and the United States. According to a comScore report, in 2013, online retail spending experienced a 14 percent increase. The report also detailed that the use of mobile to make online purchases has been increasing, and Goldman Sachs predicts that mobile online sales will exceed $638 billion by 2018. The growth of e-commerce and mobile could represent a potential opportunity for e-commerce businesses.

A business merger or acquisition can represent an important step for an expanding company to increase its assets and become a stronger player in the market. An M&A advisor can help your company ensure this process runs smoothly.