INDUSTRY
MERGERS AND ACQUISITIONS
Acquiring success – could mergers and acquisitions be a way forward? Trends in mergers and acquisitions have fluctuated, given current and past global events – but opportunities definitely exist for those with the mindset to see them, and grab them
O
ffice supplies businesses have
with many other sectors, found themselves in potentially
undergone harder times than most
desperate times. The traditional pattern of M and A now
during the pandemic as their customer
looks very different.
base dwindled. Moreover, unlike many other businesses, the return to the
NICK MUNTON, MANAGING DIRECTOR,
office has been slow, and some forecasts predict that it will
NICK MUNTON, DEOS GROUPMANAGING DIRECTOR, DEOS GROUP
never return to pre-COVID levels.
It gives meme nono pleasure to to saysay that I think wewe willwill It gives pleasure that I think
While the government did provide loans to struggling
undoubtedly seesee casualties this year. While thethe undoubtedly casualties this year. While
businesses, and the resulting expectations of economic
acquisitions market might bebe a way outout forfor some – it acquisitions market might a way some
bounce-back post-COVID were quite positive, recent
is certainly buoyant at the at moment with talks some – it is certainly buoyant the moment with- talks
global events have cast a slightly different view on things.
people are, understandably, still hoping tohoping attract to the - some people are, understandably, still
In 2021 forecasts relating to mergers and acquisitions
kind of exit theyprice sawthat theirthey business valued attract theprice kindthat of exit saw their
were driven by a set of stimuli that very quickly became
at business pre-COVID and, at clearly, those values are nothose longer valued pre-COVID and, clearly,
redundant. J.P. Morgan forecasted that M and A deals
achievable fornomany. values are longer achievable for many.
would be driven by economic changes due primarily to the end of the pandemic and the promise of more political
HOW AND WHY MERGERS AND
stability. In the UK, Boris Johnson was still riding high
ACQUISITIONS HAPPEN
(how quickly a little ‘office partying’ brought about such
Mergers, typically, occur when one business purchases
seismic political changes and public perception). The sky
another by buying an agreed level of stock in exchange
high inflation due to Putin’s’ invasion of Ukraine combined
for its own stock; an acquisition is different in that one
to create a perfect storm and M and A forecasts were
business acquires another. It does not usually change its
turned on their heads, as office supply businesses, along
management but may possibly add to it. This activity is
[10] SEPTEMBER 2022
www.dealersupport.co.uk