Mergers and acquisitions happen frequently in business. A larger company buys up a smaller company, sometimes running it as before with almost no change, and sometimes dismantling it almost entirely. But what is the advantage of mergers and acquisitions? Could your company benefit? Zoellner Garten & Company in Cincinnati, OH, offers these five reasons to buy a business.

1. Move Into a New Market

If your business has already seized every opportunity in one geographical area, acquiring an established business can be an excellent way to expand into another quickly. You can avoid competing with an established brand in the area while taking advantage of the business' existing assets.

2. Add Products to Sell to Established Customers

Depending on your product, there may be many related items you could market to the same customer base with an astounding rate of success. If you sell golf clubs, acquiring a business selling golf balls makes sense and can increase revenue.

3. Acquire Customers to Sell Additional Products

Conversely, the golf ball company is likely to have many established customers who would also buy golf clubs. You can easily capitalize on the existing consumer’s trust for another product to sell your related product.

4. Add Revenue

Buying a business with control of part of the market will put money straight into your pocket, especially if you can reduce the former operating costs of that business. Acquisitions and mergers provide an opportunity to eliminate duplicate staff and streamline operations to run both businesses more efficiently.

5. Eliminate Competition

Strategic buyers may purchase another company just to get their fiercest competition off the market. While this is not possible in all cases, when the opportunity presents itself, it can be a winning move.

If you're interested in buying a business, Zoellner Garten & Company can help you assess the potential advantages of the possibilities available. Call (513) 852-2400, or click here to start the process.