Tuesday, 16 July 2013

Opportunities for Corporate Investors

Corporate investors are companies who want to acquire businesses for a variety of reasons. While corporate investors also want to see a return on financial investment, they will often have additional reasons for acquisition. For instance, a company may want to develop a national brand by acquiring independent businesses in strategic parts of the country. Other companies may be looking to add functionality to their existing operation: for instance, a packaging company acquiring a logistics business, or a property management company taking over a commercial cleaning company. This kind of acquisition can help cut costs by bringing capability in-house, or it may help to make the business more efficient by having direct control over how the acquired business runs. Sometimes, a corporate investor will be looking for specific expertise to add to its own business and will be attracted by the quality of people working in the target company – for instance specialist engineering talent.


So it is important when preparing your business for sale to look at all the assets that might make your company attractive to an investor, not just the last few years’ profit.


Robin Boxall-Hunt, Managing Director of Axis Partnership

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