M&A/Mergers and Acquisitions

Mergers and acquisitions are a part of living business process.  If your company is preparing for such a project or such project has already been launched in your company, then this section of out site can be useful for you.

The M&A transactions are often perceived as a purely economic or even financial tool. It is so in terms of the cash flows and change in the market share.

We usually consider the M&A transactions in term of strategic marketing perspective. What will happen afterwards? Will this transaction have an impact on the market situation as a whole? In the nation-wide scale? In the international context? Sometimes what seems to be a good solution in the short-run may cause problems in future. For example, the M&A wave can be stirred up on the market fundamentally changing the market which will lead to the change in the market shares of the rest of the market players. As a result, the company which initiates such a process may turn out to be in less attractive position.

However, the M&A deals often serve as market stabilizers giving an impetus to the competition. They stimulate the market development and growth. If the company is ready for effective and hard work on the growing market, then M&A is just the concept, which will allow launching the necessary mechanism quickly.

There are a number of issues to be considered carefully and from different aspects, for example, the market capacity. Unlike the b2b and industrial sectors where M&A deals hardly ever change the final market capacity it is not uncommon with the consumer goods market. Commitment to a certain brand is often the only reason why a customer gives his money for some product again and again. Product change, even its objective improvement, can sometimes lead to absolutely unexpected result - the customers are no longer interested in the product any more. It was not a necessity. It won the competition at an emotional level. Having been changed it lost its emotional bond with the customer.

On the other hand, if the M&A deals is necessary

However, the company should ponder not just the financial aspects of the issue, but the way the market perceives these processes to make the merger with another company or the acquisition of some business successful. The thing which is absolutely clear and simple inside the company externally is perceived differently as a dangerous aggression, as a sign of defeat, as an impairment of consumer rights.