Why do many businesses become stagnant or lose financial attractiveness over time? Why do some businesses become or look more risky? Why do some businesses suffer from financial distress? Why do some businesses even fail causing massive economic hardship to many? Well, not factors leading to financial owes are always in the control of the company management. But, do you know a very few companies are affected by the external factors & most of the companies fail because they didn’t manage well the factors within their control! Most distress situations & failures are avoidable!! Typically, you can see that the companies are led by very good technocrats with a great understanding of the market & a huge stakeholder network. They also may have history of overcoming technical, operational & market problems successfully in the past.
A survey of small & medium size businesses shows that there are four incompetencies within most of the companies led by technocrat managements:
- Corporate Management: It is carried out only for compliance sake.
- Financing Strategy: It is focused only on lower cost of capital.
- Business strategy: It is typically absent or never revised for the current moment.
- Mergers & acquisitions: There are no or inadequate efforts spent on this resulting in stagnation or loss of competitive advantage.
In the context of India, large M&A firms, big strategic advisory firms are inaccessible to relatively smaller companies to fill in the above competency gap. This is mainly because the SME businesses, the top management has hardly any awareness of or hardly any time for the complex equity funding activity.
This is where Apohan comes in! Apohan provides end-to-end custom services right from problem identification to implementation with specific focus on solutions through mergers & acquisitions for our client businesses! Our motto is not to let a worthy business fail & not to let a scalable business remain stagnant.