Economies of scale, the introduction of new brands on the international market, the acquisition of new technologies, the modification of a business model or the reduction of the operating costs of a business’s activity are typical benefits that a company can gain through mergers, acquisitions or spin-offs of a part of the business.
Taking into account the indicated benefits from the reorganization, we consider the following strategic company mergers and acquisitions:
- Merger of the group companies in order to reorganize the structure and business processes
- Merger with an external company with centralized financial accounting and HR processes
For spin-offs, we consider:
- Creation of a new company to run a specific part of the company’s business (e.g. HR processes)
- Sale of the company to other entity
- Spin-off of the company in the case of bankruptcy
The last business case may occur more frequently due to the unsteady global economic situation. It applies to the situation in which a parent company goes bankrupt because of a lack of financial liquidity, but its subsidiary, e.g. located in Poland, is still profitable and generating positive cash flows.