There are always two sides to a story.
One that has been getting some attention lately is inflation and it, like all the others, has more than one angle. For consumers this is pretty straightforward….the cost of goods and services is going up. So, from this perspective, it’s not the best news.
But balancing this story is the potential for M&A activity. That stands for mergers and acquisitions and it is one of the ways businesses grow. They can get bigger by adding new products or geography by opening a branch in another community…or they buy up a competitor to add capacity and clients.
A new report on the global outlook for M&A published by the consulting firm PwC on their website Strategy + Business suggests this will be a busy arena in the coming months. One reason is the COVID recovery and the need for new approaches and technology, usually the kind of things found in small, entrepreneurial organizations which become targets for cash-rich large players. And inflation will simply add to the top line of these smaller businesses….as prices go up so do revenues, exactly what buyers are seeking.
