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Is now the time to consider acquisition?

The Coronavirus has had a negative impact on many businesses and the economic environment. Making business acquisitions is normally associated with a thriving economy and strong economic outlook. 

Last updated: 27 March 2020

However, adversity often creates opportunities and now might be the perfect time for you to consider an acquisition strategy to emerge stronger on the other side.

The current climate can provide opportunities for strategic acquisitions that didn’t exist in the same way ‘pre-COVID-19'. 

Acquisition allows you to accelerate your growth plans by acquiring target businesses, to expand and grow revenues and profits. One of the key benefits is an increase in market share, which is enhanced in this climate of being able to make opportunistic acquisitions, because there will be many distressed businesses actively looking to sell. 

The cost of acquisitions is likely to be reduced in this environment given that valuations of target businesses are likely to be suppressed, and therefore if you are able to take action, there may be some great opportunities available. 

Acquisitions are not only a great way to grow profits but also improve a business through synergies or service integration.  You may also identify that this environment presents an opportunity to strategically change or pivot your businesses.

Making opportunistic acquisitions in the current climate can really enhance the benefits of this strategy, but there are still factors to consider to ensure that it is the right option for your business. You also need to have a formal plan in place of how to approach an acquisition at the outset, to ensure that it is worth the time and money in the long run.

We can help you to check that this is the right strategy for you, and assist with formulating a plan, which is bespoke to you and considers all aspects of the current climate.  

About the author

Alex Judd

+44 (0)20 7556 1457
judda@buzzacott.co.uk
LinkedIn

Last updated: 27 March 2020

However, adversity often creates opportunities and now might be the perfect time for you to consider an acquisition strategy to emerge stronger on the other side.

The current climate can provide opportunities for strategic acquisitions that didn’t exist in the same way ‘pre-COVID-19'. 

Acquisition allows you to accelerate your growth plans by acquiring target businesses, to expand and grow revenues and profits. One of the key benefits is an increase in market share, which is enhanced in this climate of being able to make opportunistic acquisitions, because there will be many distressed businesses actively looking to sell. 

The cost of acquisitions is likely to be reduced in this environment given that valuations of target businesses are likely to be suppressed, and therefore if you are able to take action, there may be some great opportunities available. 

Acquisitions are not only a great way to grow profits but also improve a business through synergies or service integration.  You may also identify that this environment presents an opportunity to strategically change or pivot your businesses.

Making opportunistic acquisitions in the current climate can really enhance the benefits of this strategy, but there are still factors to consider to ensure that it is the right option for your business. You also need to have a formal plan in place of how to approach an acquisition at the outset, to ensure that it is worth the time and money in the long run.

We can help you to check that this is the right strategy for you, and assist with formulating a plan, which is bespoke to you and considers all aspects of the current climate.  

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If you thought your acquisition plans would have to wait until COVID-19 passes, but we’ve now changed your mind, please get in touch. Our team can help with acquisition strategy, target search, offer structuring and due diligence. 

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