- Vina Meliana
8 Merger and Acquisition Strategies that You Can Implement
Updated: Jan 26
It’s still fresh in our mind that In 2021, Blibli acquired 51% of Ranch Market. But Blibli's ambitious move doesn't stop there. On October 14th, 2022, Blibli, Ticket.com, and Ranch Market announced that they had merged under the name Blibli Tiket through their YouTube channels.
This is not the first merger and acquisition in Indonesia. Several large companies in Indonesia also took the same path. For example, the phenomenal merger between Gojek and Tokopedia and the acquisition of ConocoPhillips by Medco Group.
What is Merger and Acquisition? What is the Difference Between the Two?
Merger is a process in which companies are committed to uniting companies to present new products with many advantages, especially expanding the market and increasing the company's income. While acquisition is the purchase of a company to be taken over to reduce market competition, companies that make acquisitions will benefit from taking over companies that they consider suitable for investment.
Mergers and acquisitions work differently, but they both are useful in increasing the value of a brand. This is why a lot of large companies that have peaked their branding growth choose to do mergers and acquisitions.
Merger and Acquisition Strategies
Most people feel that mergers and acquisitions have high risks and are difficult to do, especially for companies that have just been established. However, if the company has the right strategy, it will make quite a significant profit.
1.Develop Strategies and Set Expectations
Having expectations about the company's cooperation will make it easier for the future because the company already has a plan before starting the execution.
2. Determine Your Ideal Match
Choose the ideal partner for the company you want to work together. Ensure the company has a good profile, such as location, finances, and background company.
3. Make Contact With the Target Company
A company must know more information than the target company. So contacting the target is a solution that can get detailed information.
4. Do Valuation Analysis
Having sound finances is a reflection of a growing company. So, you don't need to hesitate to work with companies with good finance.
5. Negotiate the Initial Offer
If there are companies that object to the contract, they can negotiate again. A win-win solution is a goal of negotiation, so this stage shouldn't be missed.
6. Due Diligence
Try to carry out further checks on the operations of the target company. The due diligence is carried out so that no mistakes are missed.
7. Sign the Final Contract
After the two companies have passed through all stages, the next stage is a contract as an official sign that the company is conducting a merger or acquisition.
8. Closing Deal
When the two companies' plans are mature and the contract is final, the two companies can continue the work program planned.
With these strategies, make sure that the company has thought carefully about merging or acquiring other companies. Although it is considered to have quite a significant advantage, mergers and acquisitions must also be considered carefully so that they can take place in the long term. Every company must also have an apparent reason for doing so because it will impact the company's future.