M&A Myth-busting

September 10, 2024

M&A Myth-busting

M&A deals are often surrounded by misconceptions and myths. Let’s debunk some of these common myths and uncover the realities of what M&A really means for business owners.

 

Myth 1: Only Large Companies get Acquired

Reality: While large corporations often dominate the headlines, small and medium-sized enterprises (SMEs) are increasingly attractive targets in the M&A market. These businesses can offer unique value propositions, niche market positions and growth potential that appeal to buyers.

 

Myth 2: M&A Always Results in Job Losses

Reality: Although some M&A deals involve restructuring, many aim to retain and even expand the workforce. Successful integrations often focus on leveraging the strengths of both companies, leading to job creation and growth.

 

Myth 3: Selling Your Business Means Losing Control Immediately

Reality: Many M&A deals include transitional periods where the original owners stay involved to ensure a smooth handover, help maintain business continuity and to preserve the company culture. Additionally, a range of deal structures can be explored, which may or may not involve selling a controlling stake on ‘Day 1’.

 

Myth 4: Cultural Differences Doom M&A Deals

Reality: Cultural differences can pose challenges, but they are not insurmountable. Successful M&A deals often involve thorough ‘cultural due diligence’ and proactive integration strategies, which require investment and time. By taking the time to thoroughly understand each other’s cultures, merging companies can create a unified and productive work environment, especially when there is strong strategic rationale for achieving this.

 

Myth 5: Only Struggling Businesses Consider Selling

Reality: Many owners of thriving businesses pursue M&A to capitalise on favourable market conditions, achieve strategic goals alongside a new owner or because it feels like a natural time to transition away from the business. Selling when the business is flourishing can be a proactive strategy for achieving an excellent result, as leaving some growth opportunities ‘on the table’ for a buyer can unlock additional value.

 

From the outside, the process of undergoing an M&A deal may seem daunting, but it provides opportunities to achieve excellent outcomes both for shareholders and the continuing business. Bluebox has a vast wealth of experience in advising business owners on M&A deals, and our team can help you to determine whether pursuing a deal may be right for you.

quote marks icon

Testimonials