Having a hard time hiring people that fits your job posts?
Due to the recent economic downturn, many companies are looking for ways to expand their market by investing into new market segments or expanding markets such as southeast asia region. Yes, according to the strategies they teach you in MBA schools tell you about moneytree, cashcow, star, whatever. With enough resource and workforce just to stay alive, you don’t even have the slightest idea on where to start from.
If you’re in a similar situation and that keeps you awake in the night, we recommend this:
Buy a company in the market you’re interested in.
Sounds like a crazy idea? Think about it. Not only do you acquire the assets and resources to run that business, but it also comes with clients and partners that keeps your business going. Not to forget, the people who already understands the business and functions are there too. Even the best deals on Ebay doesn’t come with such bundle, which means there’s no reason for SMEs to not consider M&A as their strategy.
There is one thing to be careful with when you consider this strategy. The employees from the company that is being bought may not like the idea. They’re minding their own business, living their daily lives, and one day they’re told that their employer is going to change. Rumors start to spread, and anxiety starts to grow among the employees. This isn’t a good factor for performance in business. After all, the company’s performance lies on the performance of each individuals so don’t forget to pay close attention the people who are going to help your business grow in the future.
In this series, we’ll explain why M&A can not only save many SMEs but can also be a handy tool to strengthen your business quickly and efficiently.
To learn more about M&A for SMEs in Japan, don’t forget to checkout this book. (only available in Japanese)