Transactions and alliances
Market-leading companies rarely evolve by organic growth alone. To rise to the top, Exceptional Enterprises know that they must seek out successful partnerships and strategic acquisitions that will accelerate their growth and enhance their competitiveness and profitability.
Emerging businesses identify cost-effective partnerships or alliances that will offer them the ability to drive value for their customers. The ability to spot the right fit — both in terms of customer value and personal chemistry — and the way in which they successfully leverage their personal and business networks are key skills that enable Exceptional Enterprises to stand out from the crowd and drive growth.
Rapid-growth stage companies begin to evaluate strategic growth acquisitions that will drive customer and shareholder value. Exceptional Enterprises also invest time and resource to ensure that an appropriate exit plan is in place for venture-capital backers and shareholders. When considering how to expand into international markets, leading businesses will often seek to identify a low cost, low risk alliance to test the water rather than looking at a potentially costly acquisition.
Next-generation market leaders will seek to carry out regular value-adding transactions, including mergers, acquisitions and the disposal of non-core elements of their business. Exceptional Enterprises ensure that they have dedicated resources to evaluate potential targets, identify the best sources of funding and ensure thorough commercial and financial due diligence is undertaken.
Transactions can be a vital element in delivering and sustaining a market leading business. As your business competes to become one of tomorrow’s leaders, make sure you can answer the following questions:
- How far can our business go through organic growth alone?
- How do we identify potential acquisition targets or partners?
- What are the critical success factors that make our transactions and alliances generate real value for our business?
If you’re unsure of any of these, don’t wait for the answers to come to you — talk to Ernst & Young.
