Business Investment Advice
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There are several reason why companies seek out acquisitions, including gaining access to new business or technology, to gain an understanding of or root into a particular market or to learn a particular skill or capability identified as useful.
We mentioned in our previous article that there are several reasons why companies seek out acquisitions, including gaining access to new business or technology and the benefits. This time however we talk about the disadvantages and complications that are associated with an acquisition of shareholdings.
Liabilities. When an attempt is made to purchase a business through shares, the purchaser then also obtains all of the current liabilities associated with the target business.
Pre-sale re-organisations. If all of the selling company's assets are not included in the sale then the purchaser will be required to strip these out before the share acquisition. This in itself can lead to complications as it may not be commercially acceptable leading to an acquisition of the business.
Dillon said the company's order book currently stands at 12m and it plans to recruit up to 20 new staff in the next 12 months. The business currently employs 45 people from its Stockport headquarters.
Maven made the investment through the Capital for Enterprise Fund (CfE) - the 75m government backed initiative launched in 2009 designed to help small and medium-sized businesses. Maven is managing 30m of the fund, with London-based Octopus Investments also running 30m.
Ryan Bevington, senior investment manager at Maven, said, "Adam is an exciting business which has recently developed new technology providing cost effective and reliable wireless building energy management capabilities. The products have been well received in the market and this investment from the CfE fund will help the team achieve their sales targets.
Article Source: Articlelogy.com
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