Dear Vicki: Should I merge with a rival firm, or would it make more sense to acquire them instead?

Evaluate whether the potential merger partner aligns with your company’s values. Photo: Getty

Vicki O'Toole

Q Dear Vicki, I’m thinking of merging my company with a current rival, which overlaps closely with what we do. If you can’t beat them join them, sort of thing. What are your views on mergers, and what advice would you give me in terms of assessing whether this is right for us, or if we should try to buy them out instead?

A Merging with a current rival can indeed be strategic, particularly when weighing the potential benefits against the challenges. However, such a decision demands thorough assessment to ensure success.