Did you know that more than 500,000 new businesses started up in the United States in 2012? However, according to Bloomberg, 80% of entrepreneurs who start new businesses fail within the first 18 months of opening. In order to prevent this from happening, businesses have the option of mergers and acquisitions, which is a corporate strategy that allows enterprises to grow rapidly. Since starting a business can be challenging and overwhelming, there are several benefits of mergers and acquisitions.
Mergers and acquisitions allow businesses to create profitable business plans. In fact, companies that have written business plans have profits that are 12% higher than businesses that do not. In addition, 50% of acquisitions in the United States are successful, and this caused mergers and acquisitions to have a value of $258.7 billion dollars during the first half of 2012. Since these types of transactions are done through lawyers and mergers and acquisitions firms, the two companies that are merging are able to agree upon terms that benefit both companies.
Mergers and acquisitions also help online businesses. Starting a business online can be challenging, especially because it is often difficult to obtain enough early stage venture capital to be successful. However, mergers and acquisitions firms help online businesses by assisting them in starting a business plan that allows them to generate profit. Since these business plans cause companies to have a greater online presence, online businesses are able to feel the full impact of mergers and acquisitions.
Starting a new business comes with huge risk because the failure rate for new businesses is dangerously high. Fortunately, mergers and acquisitions are available to help. Not only do they help companies stay afloat by helping them create profitable business plans, but they also assist entrepreneurs who are starting a business online, as well. Since mergers and acquisitions are beneficial in a variety of ways, they are designed to help both new and current businesses become more successful. More info like this.
Trackback from your site.