Both terms refer to joining of two businesses, but there is key differences between merger and acquisition. The word ‘merger’ means two organizations coming together as one. An acquisition means to takeover something or procure it. In business circles, mergers and acquisitions are often known as M & A. Both terms are used loosely to mean the same thing. But they are different in meaning. An acquisition is the purchase of an organization by another. It could be a friendly takeover or things could go wary and it could be a hostile one.
As the saying goes it is very easy to get to the top. But it is very difficult to remain at the top. There are many businesses that succeed only to come crashing down only after a few years. However, there are ways maintaining your business success.
A service business is an enterprise established and maintained for the purpose of providing services to private and commercial customers. Many service enterprises require minimal start-up capital as compared to wholesale or retail businesses which require large amounts of money. Service operators can afford to work from home, thereby avoiding costly overheads like rent, salaries and payment for amenities like water, gas or electricity.
Most business people see the buying of a manufacturing business as a lesser risk as compared to building one from the ground up. It is true that buying a pre-existing business has its high points. But this does not in any way guarantee that the business will succeed in your hands. If you have made up your mind to purchase a manufacturing business, you need to tick some vital boxes and ensure that you are making the right decision.
Buying a wholesale business can be a great decision for you in the long term. It affords you the opportunity to inherit an expansive customer base instead of depending on a few clients who may not give you business as often as you want. Another great thing about purchasing a wholesale distribution business is that it reduces the competition. You do not have to compete with every wholesaler on the planet since you would all be selling different brands.
Buying an existing retail business can be breeze. If you are lucky, you could end up with a business that has a great location, good reputation and strong customer base. In the same vein, you could buy a retail business that could make you incur heavy losses and send you into bankruptcy.