Kudler Acquiring Swot

Kutler Fine Food

SWOT analysis on Aquiring

Strength

Acquiring different company is one of the options that a firm has to expand their operations. This path may be more costly than a merger, but a lot of the same benefits are still recognized. If Kutler goes through acquisition, the changes would be to remove the ineffective management and replace them with a more efficient management team. Another great benefit to acquire is the increase in market power, which is similar to that of a merger and with an acquisition it will also help Kutler eliminate the competitions in the market.

Weakness

Kutler Fine Foods may consider an acquisition by a larger company but with an acquisition there will be some weak spot in the deal. A research by McKinsey & Company found that a failure rate of 61 percent occurs in acquisition programs, with failures defined as not earning a sufficient return on the funds invested, also poor execution and due diligence. Other reasons for failures are company mismatch, and acquiring the company to help increase the purchasing of company’s stocks. When purchasing of company stocks go up, it does not mean that it will stay up through the acquisition, which in return will also yield undesirable results.

Opportunity

Acquisitions will allow Kudler to create vertical and horizontal business alliances. This will help Kudler with rapid growth and also seizing more of the market share in its industry. There are a few ways that Kudler could build upon their opportunity, one is to acquire businesses that will supplement their business and another would be to acquire businesses that resources Kudler’s needs.

Threats

The threat with Kudler Fine Foods acquiring another company is that the other company may battle the taking over process, thus will create a risk of a costly takeover battle. The more time it takes to overcome the taking over process of the other company, the more money will be needed to complete the process. If for instance, the...