Consolidating business growth


Additionally, consolidations often mean staff layoffs because of functional redundancy between the two businesses.How these will be addressed in the consolidated business will affect the future efficiency and effectiveness of the combined business operation.Accountants use the term business consolidation to reflect the combining of assets, equity, liabilities and operating accounts of one business entity and one or more other entities.This is done to see how the combined entity is performing and to gauge future performance. When business owners seek growth and additional profits, they look at the possibilities of merging with or acquiring another firm or forming partnerships and strategic alliances.Whether the consolidation is a merger, acquisition or other combination, both buyers and sellers face tax considerations that require planning.Sellers will want to minimize and defer taxes while buyers will want to accelerate tax benefits.The term "business consolidation" has meanings for the small business person that cross over various business disciplines.For example, bankers might consolidate several business loans a company might have to provide a lower interest rate or better terms if the loans have been paid on time.


Legal, accounting and management issues are time consuming and can cloud the original reasoning behind the consolidation.

On a serious note, God willing I do hope we meet at the conference that Pastor Lyn is organising for us but if you don’t make it there, I hope we will meet in heaven and I definitely hope to see you there! Today, before I get into my presentation, let me start by saying that I would really welcome questions and answers on whatever topic we have discussed, not just the just the one I am about to present, so keep them coming. Your employees should believe that your success is also their success and their lives should also improve as yours improve.

Growth can be achieved through mergers and acquisitions. They have to be managed very carefully and only entered into after through research.

It’s been a pleasure and as I am writing this presentation I have a huge smile on my face.

You ladies are truly Phenomenal and if you have read the poem by Maya Angelou about being a Phenomenal Woman, you will truly understand what a rare breed you are. In each of these cases, accountants will produce financial statements showing how the consolidated business is likely to perform.


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