M&A: a tool for bringing new teams, skills and talents together?
Market trends mean that deal analysts can typically anticipate which mega-merger is on the cards, or which up-and-coming business is likely to be snapped up by a bigger company. But there are times when M&A announcements come as a real surprise to the industry. Some deals seem so strange that even industry experts expect them to fail.
Last year, for example, London-based games developer Splash Damage was bought by Chinese chicken supplier Leyou for $150m. It was certainly one of 2016’s most peculiar deals, but was a wise addition to Leyou’s expanding gaming portfolio. While you wouldn’t expect a company that is involved in supplying chicken products in the Fujian province to move into the international gaming market, the union of the two organisations complement one another, and has proved to be a valuable move.
Leyou’s acquisition of Splash Damage is an extreme example, but is indicative of a trend of buying into new markets and acquiring new assets, skills and talents that are wildly different from their own. Asian businesses in particular are driving this move into new, international markets and organisations. Last year, Chinese companies invested 10 times more in European businesses than the other way around and continue to be the biggest players on the global deal making stage in 2017.
In today’s world of work, a diverse mix of cultures, personalities, ages and genders creates teams that are perfectly balanced and bring fresh ideas and perspectives to businesses. An increasing number of businesses seek to create diverse teams, and acquiring or merging with another business is one way that organisations can obtain ready-made teams that complement their own. M&A can unite the most unlikely of teams and result in business success.
Stay tuned to our blog for industry M&A analysis and remember to get in touch with our experienced team with any questions you have about the M&A process and how Benchmark International can help you.