Importance of Strategic Merger & Acquisition: The most common reasons why companies merge is to share information, technology or other resources thereby increasing the overall strengths of the company. In many cases, mergers also help to overcome existing challenges, reduce weaknesses and gain a competitive edge in the market. Mergers and acquisitions can come with various tax advantages. Buying or merging with another company is usually cheaper. New possibilities offered by a new market. Obtaining easier access to a skilled labor force. One of the most important advantages offered by mergers and acquisitions is related to a wider range of services or products which can be explored. By joining forces, the portfolio of the new business can increase even more and gain access to a larger market share. Mergers and acquisitions can mean greater financial power and more influence.
PPPs can have major benefits for both sides — public and private: When governments are cash poor, PPPs can offer access to private capital. For the public sector, one of the greatest advantages of a PPP is the access it provides to modern technology, management and skills from the private sector. For the private sector, it is an opportunity for increased innovation. The balance between cost and risk for the public sector and risk and reward for the private sector is the nub of all PPP projects. The public sector body avoids bearing any risk inherent in the ownership of physical assets, which is wholly borne by the private sector company. The higher cost of private finance is offset by the transfer of risk out of the public sector. When partnering with the public sector, companies can work with courts, prisons, schools or waste management services. And if projects are well run and they achieve their stated aims, these partnerships can last for decades.
Importance of IPO: An IPO is a significant stage in the growth of many businesses, as it provides them with access to the public capital market and also increases their credibility and exposure. The latest economic turmoil once more illustrated the fact that financing strategies are pioneering tools for top managers before and after fluctuations. Companies developing long term growth and sustainable development programs are determining their strong capital financing tactics. Public offering in developing economies is an effective way to obtain long term funds with lowest cost and highest interest abroad. Another advantage is an increased public awareness of the company because IPOs often generate publicity by making their products known to a new group of potential customers. Subsequently, this may lead to an increase in market share for the company. An IPO also may be used by founding individuals as an exit strategy. Many venture capitalists have used IPOs to cash in on successful companies that they helped start-up.
Importance of Market Intelligence Analysis:
Market intelligence is vital to the success of any organization, being the foundation on which all marketing is based. Effective use of market intelligence involves the collection of data, analysis and end use of the information. Market intelligence helps you to become customer-centric, understand the market demands and consumer opinions, collect real-time relevant data, boost your upselling opportunities, reduce risks, capture higher market shares and gives you a competitive advantage. These benefits are crucial to the success of any business and hence market intelligence is one of the most crucial elements in executing effective plans for the prosperity of any business.
The Importance of Business Valuation Analysis: Not only do owners need to understand what their business is worth today, they also need to know what supports and drives that value. Far too often, owner overconfidence or apathy causes this step to either be neglected or downplayed, or at a minimum, based on incomplete data or conjecture. In this case, a valuation usually serves as a reality check for owners with a biased or uninformed viewpoint on what their business is worth. However, valuations are actually performed for a myriad of reasons, including but certainly not limited to selling or acquiring a business. There could be requirements in a buy/sell, partnership or shareholder agreement that necessitates a business valuation. Moreover, a formal business valuation can help to reconcile perceived opinions on value, and coupled with a marketability analysis, it can help a business owner determine relative value in the marketplace.
Importance of Investment Feasibility Analysis: A chance to ask and get answers to questions that help you to assess potential. You can predict the likelihood of success or failure. Feasibility studies of investments are focused and specific. They start with a single question asking whether the idea, event or action is a viable solution. This forces you to focus solely on that question to the exclusion of everything else and to explore possible outcomes. A feasibility study is not the same as a business plan. A feasibility study might cause you to discount an idea, whereas a business plan is call to action. You can, in fact, use a feasibility study as a predecessor to creating a business plan. Feasibility typically addresses the issue of the most appropriate use for a particular site, the most appropriate site for a predetermined use, or the most appropriate outlet for investment funds. Findings - Even though changes in the economy have increased risk or lowered returns, the investment market continues to devise innovative and attractive investment strategies and the determined investor keeps searching for profitable projects.
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