In today’s constantly evolving business world, organisations may have multiple opportunities to expand their horizons through mutually beneficial partnerships. Considering that change is the only constant, businesses need to keep their eyes peeled for such opportunities and leverage them to their favour. Consultants at 121 may assist you in sourcing potential partners for your business.
Having businesses merge and acquired have become popular trends, especially in the IT industry. The benefits of such mergers and acquisitions include better profit margins, enhanced business sustainability models and expansion.
Such mergers enable companies to provide complementary services, like for example IT communication infrastructure and security. When considering that certain services are indeed specific, it may be more practical to acquire a company and its talent, rather than training staff yourself. One of the reasons why such mergers and acquisitions are becoming more popular is because business owners that may be seeking to retire would want to sell off their business and leave it in good hands.
In some cases, business owners would not want to engage in actual mergers. There are other solutions such as partnerships. Although it may be perceived as a merger, a partnership can be set up with no financial transaction taking place. In such instances, each partner would be allocated a percentage of the company depending on the value or investment they input. Combined partnerships bring together different businesses which may contribute to a more integrated service approach than before.
Another option may be that of a joint venture. These normally require reduced effort to set up due to less formalities. In this regard, they are easier to start and stop. Typically, a joint-venture would include the two businesses cross-selling their services. Such agreements can be set up for either a short or long-term basis.
Another option to explore is that of subcontracting. In certain cases, when the talent required is specific, you would do well to consider subcontracting especially if the term of service is required on a non-permanent basis.
Irrespective of which type of approach you would opt for, there are some key factors to keep in mind to ensure that the new synergy yields the desired results. One key element is to ensure that the working relationship is defined and documented to ensure clarity. This allows the businesses to set expectations from the offset, minimising surprises and disruption.