One of the main misconceptions of entrepreneurs is that they believe that their company is of no interest to the invaders and cannot attract their attention. Revenues, they say, the company is small, it does not have any significant market share, it does not have “fat” customers, it does not own a recognizable brand or unique production technologies, etc.
Initially, it is a mistake to say that if a company does not move billions, it is not interesting for an absorber. The aggressor has a slightly different scale for assessing the attractiveness of assets. So, if a company with a statutory fund of 600 thousand rubles has buildings or land plots on its balance, the cost of which can exceed several million dollars, then you can be sure that this company is already under the gun of raiders. Having bought a controlling stake, even at a price several times higher than the nominal one, the invader becomes the owner of a tidbit, which later “cuts” and resells in parts. At the same time, its average profit will be 300-500%, and in more successful cases it can reach 1000%.
Indeed, in most cases, the main purpose of an unfriendly takeover is the property belonging to the enterprise-purpose or the right to it. However, it is possible that the company attracts invaders for completely different reasons. These may be established commercial relations, a well-known trademark, a company may appear to the aggressors to be useful simply for eliminating a competitor. Each of these objects separately or their combination is of interest for sinks or their customers. The latter, through acquisitions, can implement various business strategies – such as, for example, horizontal integration, vertical integration (direct and inverse), restructuring, and intermediary operations.
Expansion of the business through a large horizontal takeover (acquisition of a competitor) leads to an expansion of the market segment. A good example of such integration is Wimm Bill Dann. Currently, the company includes 23 enterprises of the dairy industry and producers of juices. At the same time, Wimm Bill Dann plans to increase its market share. How do you think this will happen?
When combined under the common management of several strategic business units that have common elements (technology, marketing, supplier geography, distribution network), a synergistic effect is achieved and an internal potential is created for further growth.
Consider expanding business through direct vertical integration (buying a potential or current customer) or reverse vertical integration (buying a potential or existing supplier). The main advantage of vertical integration is the ability to manage quality while reducing the total cost of the product. An additional effect brings new opportunities for planning reserves, for research and development and to improve the quality of logistics.
To illustrate such an expansion of business, one can mention any enterprise of the metallurgical industry (for example, a profitable metal rolling plant). In addition to the fact that such an enterprise is interesting enough in itself, it is a key element for a number of industrial enterprises that use rolled products manufactured by them. Owning such an enterprise can reduce the cost of production and dramatically increase profitability. But the metallurgical plant is not the only enterprise in the production cycle. In front of him are mining companies (mining and processing plants), without which the work of the metal enterprise is impossible. Perhaps, all metallurgical magnates tried to build their empire on the principle of a closed production cycle.
Take a look at your enterprise from the outside and think: is it not in the chain of suppliers or consumers, is it not of interest to gain access to the production or consumption market? Does your company have undervalued assets – both tangible and intangible, which can bring more profit, but are used inefficiently by you? If you answered at least one of the questions in the affirmative, then know that your company can be a target at any time.
The conclusion suggests itself: almost no company can feel confident. With the exception of those who are on time, before the start of unfriendly actions, organized the proper protection of their property. Organizational measures aimed at protecting property and assets from hostile takeovers should be carried out by specialists in this field. Independent adoption of measures to protect assets, as a rule, does not lead to a significant positive result since the correct choice of measures and their combination can be carried out only on the basis of a comprehensive analysis of the state of the enterprise and protective processes.