Acquisition Options

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Acquisition Options

You may be planning an acquisition in order to fast track growth. Alternatively, you may have been approached by a seller looking to divest. Either way we’ll work with you to ensure that you evaluate and choose between acquisition targets for the best possible reasons and on the best possible commercial terms.

Strategic Transactions use the 10 step acquisition process to project manage the acquisition from concept to final integration.

Acquisition options include:

Vertical Acquisition

Involves your company buying a supplier, distributor or other part of the supply or value chain so that these components can be brought under the control of one entity.

This enables the acquirer to better control production & price, as well as to reduce expenses by ensuring that production and distribution work in concert.

Horizontal Acquisition

Involves your company acquiring another company in the same industry – either a competitive or complementary business. This can help you increase market share or diversify your product offering.

In Australia, “roll ups” where several companies supplying similar services or goods are combined are becoming increasingly common. Here smaller businesses in a fragmented industry are consolidated under a common financial and reporting infrastructure.

Geographical Acquisition

The goal of a geographic acquisition is to expand into other territories. If well managed, this expansion will have the benefit of entering new markets and providing new customers with a range of new products and services. Successful geographic acquisitions will result in improved economies of scale through revenue and cost synergies.