Strategic Acquisitions

2. Expanding Your Business

If you integrate another business into yours, both could benefit from the expansion.

2.1 There may be opportunities to cross-sell to each other's customers.

• This may be difficult if the two businesses have conflicting cultures and systems. For example, if you sell equipment to NHS hospitals and you acquire a company which makes quick one-off sales of equipment to medical practices. The length of the normal sales cycle customers are used to can be a major cultural factor.

2.2 You could improve public perception of your company.

• Bigger companies are often believed to be more reliable, and you should get better brand recognition.

2.3 You should benefit from opportunities to develop other products.

• A wider customer base makes successful new product launches more likely.