Merger and acquisition operations are alternatives to grow quickly, take advantage of the internal scenario and protect yourself from the global recession that is coming
The financial market in Brazil has its attention focused on inflation, the shortage of supplies and the risk of recession that plague the global economy. The time to look for alternatives to manage possible impacts is now, and inorganic growth is one of them.
Resilient to rains and thunderstorms, the Brazilian economy presented good results in the third quarter of this year. The Ibovespa index rose 11.7% in reais and 7.2% in dollars during the period.
Even so, the international scenario was an important element for the earnings per share estimates on the Brazilian stock exchange to be revised downwards. The projection for the next 12 months, 2023 and 2024, changed from 0.2% to -1.8%.
Entrepreneurs may ask themselves: what is the best strategy to take advantage of the internal landscape without losing sight of the threats of the external environment? One of the answers is to bet on inorganic growth and strengthen itself in the face of the approaching crisis.
“Inorganic growth is when your company merges with other companies in some way and the resulting operation becomes larger than the separate parts. Your company grows from this union and no longer just through your usual business”, explains Senior Partner at Pipeline Capital, Pyr Marcondes.
The immediate benefit is reaching growth targets faster than flying solo. For Marcondes, inorganic growth “is an anabolic steroid and accelerator, reducing the time curve for expansion and development of your business”.
Mergers and acquisitions are the most common examples of inorganic growth. It doesn’t matter if the original company is selling, acquiring or participating in a merger. The essential thing is to be aware that any organization can benefit from the operation. “Alternatives that every businessman and every company needs to keep in mind at all times, even more so at a time like the one we are living in”, adds Marcondes.
Therefore, it is not the size of the organization, or the sector in which it operates, that will provide growth. It is necessary to make the calculation, to make sure that the result will be what Marcondes calls “a sum that multiplies”. In other words, ending a process where those involved will leave greater than they entered.
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