Many entrepreneurs hold the view that mergers are only for successful corporate enterprises. However, many financial experts state that this is far from the truth. They clarify these businessmen need to understand an important fact. Entering into such complex business deals with organizations similar to theirs also benefits them. These proprietors can then sell their products and services to a larger target audience as the market expands. They also get the chance to implement new technologies and production techniques within their concerns. It helps to improve the internal efficiency of their establishments. This takes these owners one-step closer to gaining a competitive advantage.
Arnon Dror CT – What do entrepreneurs need to consider when entering into business mergers?
People in the world of international finance and business have high regard for Arnon Dror. Very few financial specialists can match the achievement of this MBA graduate from Hebrew University. He has the distinction of occupying the post of Vice President in a number of companies. Xerox, Creo Inc., Scitex, Kodak, Creo Americas and Presstek are just a few of these establishments. The people in such concern admit he has an impressive track-record in area of corporate reconstruction. Many of them even credit him for improving the fortunes of their organization. In fact, many of his close acquaintances say he specializes in many diverse fields. These include strategy planning, internal control, IT systems, international taxation, cash flow management, and ERP integration.
The Arnon Dror CT team of professionals explain smart business merger deals can do wonders for entrepreneurs. However, acquiring another commercial establishment is a complex financial transaction. These businessmen got to make the right decisions to get the results they are looking for. It is prudent on their part to hire proficient experts specializing in this field. These specialists can ensure these proprietors make the right moves.
Moreover, they need to keep the following 2 important factors in mind when taking such a step:
- Scrutinize the overall financial health of their establishments
The parties entering into a business merger need to determine the proper valuation of their respective concerns. Small entrepreneurs showing interest in such complex arrangements need to do the same thing. For this, they need to assess the current financial and liquidity position of their businesses. These owners can only accomplish this through an in-depth internal and external audit. Only then can they properly present their case during purchase consideration negotiations.
- Due diligence and proper compliance
Many governments around the world enact specific laws and regulations which affect business mergers. Officials do this for one purpose in mind. They aim at preventing monopolistic and unethical trade practices. They want to ensure a level playing field for all commercial organizations. They expect businesses into such complex corporate deals to follow such guidelines to the letter. Small entrepreneurs taking this course of action need to do the same thing. This ensures they don’t end up doing anything illegal.
Arnon Dror Kodak team of specialists say business mergers take small entrepreneurs to the next level. They are in a position to take the might of the large corporate enterprises. However, when taking this step, they need to keep the above 2 important factors in mind. Only then can they reap the benefits.