How does the merger between Kraft and Heinz annonced yesterday translate to business here in San Diego? To your local business? Heinz acquires a 51% share in the new company and Kraft a 49% stake, consolidating two major brands and paving the way for a new grocery store food powerhouse. Are both companies worth more today? Are the shareholders better off for this transaction? Is the new company more effectively positioned to capture new market share and continue acquisition of other grocery store or food related entities? Early speculation is exactly that – a blueprint for present profit and future growth.
So let’s return to your local San Diego business for the moment. What can we learn from such a news worthy and sizeable transaction? One way to expand your business model, immediately increase net valuation, improve the position of the ownership and capture more market share is to merge with another competitor in your market space. It may not even need to be a direct competitor, it may simply be another company with products and services that compliment your own.
Think of the economies of scale of combined brick and mortar costs, employment, accounting systems, sales and marketing and back office functionality. What impression would the new corporate structure make upon your existing customer bases? How about on newly targeted prospects? Are you in a stronger position to offer a greater spectrum of goods and services? How do you think that translates to the bottom line? What impact does that have on your personal financial present and future?
Mergers and acquisitions are an excellent business tool to expand business opportunity while reducing overhead expenditures. The experienced business advisory team at Allen Barron is uniquely positioned to advise you and guide the process of evaluating options and developing an actionable plan for the future.
Do you want to grow your business? Take the first step. Contact us for a free consultation at 866-631-3470 today.
