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Mergers and acquisitions
Mergers and acquisitions (M&A) require careful planning and optimal timing. Successful M&As rely on a company’s ability to identify the ideal moment to expand or integrate. The economic environment, industry trends, and financial health of a company all affect its potential success, making timing so important.
A well-timed acquisition can give a company access to new technology, intellectual property (IP), or market share. Legal professionals emphasise the importance of conducting due diligence to ensure the merger or acquisition is as successful as possible. Corporate solicitors can advise on the legal implications of mergers and acquisitions.
Disney’s acquisition of Pixar in 2006 and Marvel in 2009 were well-timed, with both companies offering valuable IP that Disney quickly built success on. By identifying the right time to acquire these companies, Disney expanded its market reach and strengthened an already vast brand portfolio.
On a people-level, acquisitions and hiring the right people at the right time is also important for success. Companies that hire too aggressively during periods of growth may have to lay off staff in the future. The tech industry prioritises hiring talent to innovate and launch new products and services.
Reacting swiftly
Crisis management is an important part of a business. Crises often strike when least expected, whether due to natural disasters, internal issues, or national or geopolitics. How swiftly and effectively a business responds can define its future: those that act quickly and decisively can often maintain customer trust. The consequences of acting too slowly can be significant, particularly where customers’ health is concerned. Food companies must act fast when handling product recalls – when a potential health hazard arises, they should remove affected products from the shelves, notify customers, and conduct internal investigations. Swift decisions and actions can prevent harm and uphold the brand’s integrity.
Businesses with well-rehearsed crisis response plans, along with dedicated crisis management teams, will often be better equipped to respond. Crisis response plans may include predetermined actions, communication protocols, and ensuring that every employee knows their role. Some organisations conduct regular simulations to assess their readiness for different crises, and by practicing responses, they can minimise confusion and reduce response times.
Knowing when to pivot
As consumer preferences change, the businesses that are agile enough to adapt have the most success. Recognising the right time to pivot can prevent companies from becoming obsolete. One of the most successful companies of recent years, Netflix, was in danger of losing relevance as a video rental firm. Recognising that widespread streaming was on the horizon, the company pivoted to become one of the world’s largest entertainment platforms. They then expanded to produce more original films and TV.
During the pandemic, restaurants adapted by offering online orders and delivery. The quick shift allowed them to stay in business while others faded. Similarly, companies in other sectors like retail accelerated their digitalisation to meet consumer needs. Recognising the right time to pivot can make or break a business.
Conclusion
Timing isn’t just a strategic advantage but a critical factor in success. By observing trends and analysing market conditions, organisations can identify the right moments to take decisive actions.
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