The Top Advantages of Product Extension Mergers

March 21, 2017

Successful corporations often look for ways to boost sales and growth through various mediums. Apart from going down the traditional route of marketing, one way of increasing sales revenue is through product extension mergers.

Product Extension Mergers Defined

Product extension mergers are simple yet effective sales strategies. These happen when two companies in similar markets merge for the common good of businesses and target consumers in question. Some of the main advantages of product extension mergers will be explored below.

The Top Benefits of Product Extension Mergers

If you’re a successful business seeking proven ways of expanding your current product offerings while enjoying the benefits of lowered manufacturing costs, a product extension merger is an ideal way to start. Many successful mergers and acquisitions (M & As) experience increased:

• Value generation
• Market share
• Profit margins
• Tax breaks
• Cost effectiveness

Everything’s Bigger in Texas

According to the Dallas Morning News, 2014 highlighted a record year for mergers and acquisitions in the State of Texas. In its article “Mergers and Acquisitions in Texas Hit Record Levels”, the tally of deals for the year was 536 – up from 401 the previous year. The reports were sourced from independent research firm, Mergermarket, which didn’t take into account private and confidential deals in the state. This winning streak didn’t end in 2014, either. The Houston Chronicle reported that in 2016, there were 909 mergers exceeding $450 billion. One example is the revolutionary deal between GE Oil and Gas and Baker Hughes.

A Business Broker Can Help

Business broker Texas deals are easier to accomplish than you’d think. Prodigy Partners is a Dallas business broker with a solid understanding of the local business marketplace. From agricultural firms to oil and gas conglomerates, fast food chains to healthcare organizations, this shrewd business broker understands the art of the deal.

Consult a Business Broker Today

Prodigy Partners has the experience and know-how to complete exciting mergers and acquisitions in all business sectors. This Dallas business broker handles all aspects of the transaction for you, including valuations, negotiations, and closing the deal. You can easily set up a consultation with Prodigy Partners in Dallas, Texas by calling 214-599-0448.