1) Fill a strategic gap in the company’s product, resources (people) and capabilities by obtaining quality staff or additional skills, knowledge of your industry or sector and other business intelligence.  Organic growth can be accelerated – businesses in the same sector or location can combine resources to reduce costs, eliminate duplicated facilities or departments and increase revenue.

2) Help the company enter a new market, with diversification of the products, services and long-term prospects of your business – a target business may be able to offer you enhanced products or services which you can sell through your own distribution channels. Accessing a wider customer base and increasing your market share – your target business may have distribution channels and systems you can use for your own offers.