Environmental engineering firms: is bigger really better?

Article Abstract:

The relationship between revenue size and the two profitability measures of percentage income and net income have been analyzed for 60 large and publicly traded environmental service firms. The aim was to determine the existence of a relationship between the size of a company and its profitability. Results fail to show a strong relationship between profitability and market share in industry. Acquisition companies should make sure that their building efforts will result in synergy.

Pollution control industry, Environmental services industry, Market share

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Why acquire a company?

Article Abstract:

Acquiring a company is a business expansion strategy and is primarily driven by the relative price of the assets. The firm's other strategic reasons become more feasible when the value to the business to be acquired are lower. Other reasons for acquiring a company include diversification into new market niches, increasing revenues, establishing new and wider customer base, vertical integration into related businesses, and eliminating direct competition.

Methods, Economic aspects, Corporate growth

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What does a buyer look at?

Article Abstract:

Proceeding with an acquisition requires a company to identify potential target companies and to gather significant information about the market. Evaluating the markets involves determining the client base, proprietary market edge, financial situation and service claims. On the other hand, a company assessment must include management experience, competitive advantage, a focus on core business, certification and potential to provide economic returns.

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