6. A guide to Mergers and Acquisitions in the UK（6。）.pdfVIP

6. A guide to Mergers and Acquisitions in the UK Mergers Acquisitions (MA) are becoming increasingly popular for the aspiring foreign company wanting to invest in the UK. Business growth can be achieved in a variety of ways. Organic expansion through marketing and business development – is perhaps the most conventional option, but it may not be the fastest. In addition, growing organically in overseas markets is challenging where local customs, rules and regulations are not fully understood. One, often quicker option, that can avoid the challenges of setting up in a new market, is to either invest in, or buy outright, a business operating in the market of interest. Today, acquisitions of Western businesses by overseas (buyers are at an all time high, and levels are growing. Foreign companies may undertake MA for a variety of reasons, including obtaining brands and intellectual property, market access, and market knowledge. Foreign companies are becoming increasingly confident in their ability to finance and execute deals. And foreign private equity acquirers, those who buy in to a company primarily as an investment rather than as an addition to their existing business, are becoming more established. Despite the growing volume and value of deals, MA transactions are not without risks, and proper advice should be sought when contemplating this option. This chapter sets out some of the key considerations. In each of these areas, Deloitte has a specialist team available to assist. 6.1 MA strategy In considering whether MA is the appropriate method to improve shareholder value, performance and market competitiveness, a company should first review its corporate strategy. Corporate strategy makes the company greater than the sum of its business units, and sets out the organisation’s direction and goals, business portfolio, resource allocation and growth plans. A corporate strategy review is critical for success, yet is often neglected by e