The merger must have a Business interest


But how can we choose between all the opportunities that present themselves?

The Baker imagines that it would be easier to merge with an enterprise similar to his own. But would that bring him Value?

A merger brings value if it brings together two complementary enterprises, on a product range, on operational know-how or on territories. That way, both enterprises benefit from each other's know-how: together, they're stronger.

The Baker has identified a network of cake shops in difficulty: its coverage is less than his but brings new product models and a high-end image.

Merging two identical enterprises is always is Culture shock: we know our customers, our products, our hierarchy, our tools, our premises and we struggle to become aware of another world. The merger will be difficult anyway.

But the game is worth the candle if a complementarity exists that strengthens both of the original entities. If the Offers are different, we can think about having each entity sell both ranges in its distribution network. We double the market potential.
If the territories are complementary, we can do the same thing.
If we choose to select and then generalize the best Operational Processes from each one, we can improve our overall productivity.
If we bring together the best Transformation practices to build a new Approach, we can gain in Agility.

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