Cross-sector acquisitions

12th April 2022

Mergers & acquisitions (M&A) are at a high – a recent survey found that 66% of UK CEOs expect to pursue transactions in the next 12 months. Our corporate finance team can assist with both acquisitions and disposals of your business, including marketing and due diligence.

 

In this blog we explore the possibility of a cross-sector acquisition, and why a purchaser may look to buy a business from a different sector to their own.

 

Cross-sector acquisitions

If you are looking to sell your business it is important not to narrow your search for an acquirer. It is not advisable to second-guess the market, as businesses that are in a similar market to you but perhaps a different sector/product/customer base may still have reasons for having interest in your business. Cross-sector acquisitions are common, in particular there are two main reasons:-

 

  1. Diversification – a business may look to acquire your business in order to diversify their offering. They may already service your customer base but with another service/product, or they may offer a product which would complement yours.

 

  1. Access to a particular customer/market – a business may look to acquire your business in order to access a key customer they have been trying to win a contract for, or a particular market they are trying to break into.

 

As part of our corporate finance services, we explore a range of businesses in your industry and market in order to target key businesses that we think are worth approaching. Should you be looking to acquire or sell a business, speak to your Whitings contact or email jaimieking@whitingsllp.co.uk

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