Strategic buyers currently have a competitive advantage in current economy opposed to private equity. The strategic buyers are closing 94% of announced mergers and acquisitions.
Key components of an acquisition analysis:
- Purchase technology to catapult above competition
- Acquire and additional product line that complements, adds value, and creates competitive advantage.
- Target companies have attractively low PE ratios
- Expand intellectual properties
- Increase customer base
- Reduce overall costs
- Improve asset utilization
Small and Mid-Size Business