Expansion Transactions

Expansion is an increase in the size of a private company’s business as a result of a transformative transaction. There are a variety of reasons private companies choose to expand through a transaction as opposed to an organic growth. Acquisition growth happens much faster, virtually overnight in some cases, whereas organic growth takes time as its sales grow. A private-held company may want to eliminate a competitor, enter a new geographic market, introduce a new product line, or bring on the talent and management team that results from an expansion transaction.

Expansion can be accomplished through mergers, asset acquisitions, tender offers or joint ventures. The following methods can be used to help a private company grow without having to create a whole other business entity.