Mergers and Acquisitions: When not to?

When not to merge or acquire?

1. When a review of the business shows that internal processes can be improved and that growth can be achieved internally.
2. When the costs of either option would not be commensurate with the increased turnover and profits.
3. When the cost of raising finance for an acquisition would not be covered by the sale of unwanted assets.
4. When there is a danger of losing the identity of your company in either option.
5. When there would be no chance of creating a working management structure for the enlarged business.
6. When the market would not be able to support the planned increase in production.
7. When the merger or acquisition would lead to the danger of a loss of intellectual property.