Acquiring another business is an excellent strategy for expanding your customer base or increasing sales. In theory, these moves are great. In practice, things can get somewhat more complicated. To ensure a successful acquisition, Connecticut owners should be certain that they understand how things will play out under current business law.
Synnex Corporation — an IT company — recently acquired Convergys for $2.8 billion. Synnex plans to expand its Business Process Outsourcing reach by placing Convergys in its Concentrix division. This will put the company’s BPO reach into 40 different companies, servicing clients in about 70 languages. It should also rake in an additional $2.7 billion in sales for BPO.
Synnex’s Concentrix division already has an established BPO in dozens of countries. Folding in another call center with global reach and established infrastructures, clients and employees is likely easier and cheaper than expanding Concentrix’s reach. Acquiring Convergys also eliminates what might have otherwise been direct competition, giving the company a more straight-forward path to success. The acquisition is expected to take as long as 12 months before closing.
Although the average business owner in Connecticut is not necessarily looking to expand its global reach, acquisitions are still a vital tool for growth and expansion. When done correctly, an acquisition can open up new opportunities across the state or even across the country, bring in new customers, eliminate competitors and increase profits. This can be a complicated task though, so many business owners choose to work under the guidance of knowledgeable counsel with experience in business law to prevent any errors that may negatively impact their business.