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Buying a Larger business
Sometimes it is possible to buy a larger business than your own in the same sector but which is less well run and less valuable. Your management can improve it and thereby perhaps treble the size of your business.
Improving strategic fit
It is often possible to sell a non-core part of your group which is not being particularly successful to another group for whom it may have strategic significance and will command a high value.
Bring Strengths to a new sector
It can be possible to acquire a smaller company in a slightly different sector from your own, which, with a new formula, can be rolled out on a much larger scale using your company’s greater financial skills and financial capacity.
Gaining critical mass
Merging with a competitor can sometimes produce the critical mass that is needed to attack the export market on a global basis.
Best retirement exit
The owner of a private company may wish to retire and maximise his/her exit opportunity for which a Management Buy in team and perhaps two trade buyers may be encouraged to compete.
Taking success to the next stage
A fast growing company may have almost run out of financial resources but can be a very attractive purchase for a larger company in a similar sector which has the strength to take that company on to its next stage of development.
Capability combinations for Growth
A marriage of technical innovation and know-how with strong marketing / financial skills can produce a highly successful combination for growth.
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