Have you noticed the increase in acquisitions and mergers lately? There are many industries who have been facing challenging times and tough competitors. The economy has been part of “uphill battle”. Some industries are affected by the international trading differences or disputes. Some countries use this area of business to play “chicken”, holding a tough line to see if others twitch or blink. Meanwhile such “games” greatly affect employees and their families’ lives.
The fall tends to be a good time of year for businesses to get into these “tugs of war”. The economy can provide the added tension for a game of “king of the mountain”. But who really wins or loses? How can you be sure that your decision to sell your production line or business is actually a wise move on your part?
In order for a business to seriously consider this game of “spin the bottle”, the industry needs to be prepared for the worst scenario. More and more large stores are either getting out of the business, or switching to strictly “online shopping”. It is all a gamble. Though it may seem to be the way many shoppers prefer making purchases, there is far more to consider overall. Here are some of the concerns:
a) Deciding to sell or acquire a business involves a lot of research and financial analytics. Is it a wise investment?
b) Online shopping may be ok for some items (i.e. computers, technological items, electrical equipment, and such), but there are other items that are better selected in person. Technological items/products can be manufactured by a high quality entity, making sure each item is developed and finely created by a highly crafted team of experts. Though some workers may not be as conscientious as others, you won’t know until you have made the purchase and examined it upon delivery.)
c) As for clothing of all types, there are many manufacturers, who use different or various measurements for sizes, which makes it very difficult to select the accurate size for a person. This is a BIG challenge. There doesn’t seem to be much consistency in this area of sizing.
d) Then there is the concern for “quality” of products. Whether the product is made of cloth, metal, plastic, wood, heavy fabric on furniture, glass, etc., all material is either made with quality in mind, or how cheaply it can be made. This is another aspect that can’t be determined online or via a catalog/brochure.
e) Prices can also be deceiving. Just because the price of an item is higher doesn’t mean it is a “quality-made” product. Something of good quality could be made in bulk, allowing it to be sold for less – but not always.
f) Some manufacturers and stores can be known for well-made products, and yet that reputation can be blown away by the production of some bad batches of products.
Before making a decision about merging or acquiring, confirm the credibility of the business and its products, etc. Also seek out legal advice.