More small businesses expecting to merge

Invoice finance facilities can provide that extra cash to help mergers succeed

Up to a third of small-to-medium sized enterprises (SMEs) could merge in the next twelve months, according to the latest research by the Law Consultancy Network.

Out of 64 firms surveyed, 21 indicated there was either a good chance of a merger including them or they definitely were going to merge in 2012. In fact, more than eight in 10 businesses had considered the possibility of a merger in the second half of 2011.

The results also showed a tendency for mergers to be considered more by larger firms, with 43% of those with 10 or more partners indicating they were likely to merge, in comparison to just 21% who had less than 10 partners.

Consultant Andrew Otterburn said the figures showed merger activity was strong and there were likely to be a number of mergers going through in 2012, “‘Most firms we are advising have had discussions with at least one firm in recent months and have identified possible merger candidates or teams of people.”

Growth through mergers or acquisitions can be a daunting step for smaller businesses but they often prove to be a really effective way of achieving a step change and exponential growth, assuming a compatible partner has been found.

Invoice Finance for Mergers & Acquisitions

Has your SME considered the possibility of either a merger or acquisition in recent months? Are you afraid of the time and cost associated with such moves?

Invoice finance solutions, such as invoice factoring and invoice discounting, allow ambitious companies to complete mergers without the risk of running out of money and with the knowledge that working capital is in the bank and available.

Why not find out more about our invoice finance products specifically designed for mergers and acquisitions, or contact us now if you’d like to discuss your financial requirements with our team of experts.