Scalable Business Merger Model

Scalable Business Merger Model

Project Cost: USD500,000

Amount Invested : USD160,000

Amount Required : USD340,000

Knowledge / Experience Required: finance

Proposed Investor’s Role: n/a

Industry: informatics / multimedia, internet, consulting

Project Stage: seed

More Information:

The cottage industry of a web consulting firm has being around since the start of the internet age. Very few of these operators can really afford to offer a total or impartial solution. They struggle to provide project management, Quality, more relevant solutions, professionalism or maintaining deadlines. There is also no consistency for globally represented clients as each country provider has a different programming system, conform to different standards and have different opinions on design, Search Engine Optimisation etc. The rapid changes in the web industry has kept small operators on the edge of rising labour costs and non-value adding costs, such as accounting, administration, legal and other necessary disciplines to run a company professionally and efficiently.

The time is right to form a global company to address the rising demand of clients as mentioned above. This ‘cottage’ industry will be forced to mature as the software industry needed to, and in time these smaller operators will start to disappear. Clients globally need more security in knowing their providers will be around when they need repairs, upgrades or entry into new technologies, a security the small operators cannot provide. That is where we come in!

Instead of trying to expand globally by establishing branch offices globally, which has a very large price tag, we have decided on the merger route. With mergers we automatically attract people who are familiar with the business world, and understand margins, profit and cash flow. They are instant managers. We merge companies together who have different skills and products, which may be used in the global market, rather than just local markets. By merging we have control of who joins and who doesn’t join. This empowers us to target companies with either skills the group needs or global clients the group want to supply products to. Mergers allow the group to leverage sales of other products to an immediate audience, that being the current clients of each individual company. Costs for administration, marketing and project management are greatly reduced as these services would be centralised. A group of merged companies are able to take on large projects either in one region or projects that span multiple regions. We have already started with the merging at this stage. We have prepared a business plan and ROI and would very much to share this plan with you.

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