The Transition Companies Denver and The Buyers Advantage.
The Advantages of Synergy by Gene Sartin
At the Transition Companies we want every business owner thinking of selling to be reminded of why buyers need to buy. Gene Sartin expresses to every potential client that one can truly add one to one and see M&A leveraging turn it into three. So how does that happen? Here are some ideas.
We have learned at The Transition Companies that synergy is perhaps the greatest driver of all deals. Synergy is the magic force that allows for enhanced cost efficiencies between two merging business entities. Synergy takes the form of revenue enhancement and cost savings. By merging Companies together one can often experience reductions in cost in a variety of ways.
To stay competitive these Companies in Transition need to stay on top of technological developments and their business applications. By acquiring a smaller company with unique technologies, large Companies can maintain or develop a competitive edge.
Size often matters. Whether it's purchasing printing or a new computer system, a larger company placing those orders can save more on their costs. Mergers translate into improved purchasing power for buying items such as equipment or tools. By placing larger orders, Companies have a greater ability to negotiate prices with their suppliers. An effective Transition into an ever increasing larger business just makes sense.
Companies buy other Companies to reach new markets and grow revenues and earnings. A merge may Transition two Companies marketing and distribution channels, giving them new sales opportunities. A merger can also mean a greater Transition of a Companies standing in the investment community. Bigger firms often have an easier time raising capital than smaller ones.
The execution of a high quality liquidity event is not for the faith of heart, Gene Sartin reminds everyone, but it is well worth the investment of money and time.
Selling a business is one of the most important events in the life of an entrepreneur. Gene Sartin and other advisors at The Transition Companies, believe that sellers may face that perfect opportunity only once. To reap the financial rewards of years of hard work and sacrifice one must prepare and plan for the desired outcome.