It would be wrong to say that an acquisition or a merger is not healthy for an economy. Many at times it has been observed that companies that were struggling to achieve economies of scale have shown huge profits after a merger. In case of acquisition, many industry leaders opine that after acquisition the company itself has become a niche brand. Thus, acquisitions and mergers are essential especially in a fragmented sector like healthcare and pharmacy.
Anthony Munk, son or Peter Munk had been closely associated with the inner workings of a business organization since childhood. He has been associated with ONEK Corporation for nearly 30 years and presently he is the Senior Managing Director of the company. Munk has a Bachelor’s degree in Economics from the prestigious Queens College.
Munk is also associate director, member or the board of directors of numerous other companies such as SIG Combibloc, Cineplex Entertainment, Barrick Gold Corporation, Jeld-Wen and Jack’s Family Restaurants. Previously he has been associated with corporate houses of the likes of Husky Injection Molding Systems, Loews Cineplex Entertainment, Vencap and Imperial Parking.
Anthony Munk perceives acquisitions and mergers as essential business activity to ensure the survival of many companies. According to Munk some of the benefits of acquisitions and mergers are as follows:
- In case of sick industries a merger is likely to ensure the survival of the particular firms. For instance if some small or medium business providing similar or complementary products or services have been suffering heavy losses, then the management of the firms can consider a merger.
- Usually, mergers are carried out with the help of private equity investment firms like ONEX Corporation. Post-merger the consolidated revenue and talent pool will help the companies emerge as a success.
- Companies on the verge of bankruptcy often accept acquisition proposals. Herein the company is sold to a private equity investment firm like ONEX Corporation. Such acquisition usually produce excellent results. Not only are the jobs of the company employees are once again secured, the firm itself begins to thrive. Proper restructuring, reorganization and funding provided by the equity investment firm ensures the survival of the acquired company.
- In case of fragmentation, Munk advises that consolidating different fragmented units of a single sector of an economy bodes well for the market. The consolidated revenue and profit margin ensures stakeholder confidence. Moreover, the advice provided by the equity investment firm can also help the company emerge as a business leader.
Thus, Anthony Munk believes that mergers and acquisitions ensure the health of the economy and the market. It is important to understand that survival of each and every company is essential to ensure a thriving economy and sometimes this is possible only through mergers and acquisitions. Moreover, a successful merger is beneficial to the company, its employees, stakeholders and even the equity investment firm overseeing the merger. Thus, Anthony Munk, strongly advices that if a corporate or a small or medium sized business’ management feels that it is running at a loss then it must consider a merger.