I wanto to Internationalize my company: Which are the types of external types growth?

There are three possible options for external growth, each of which has its characteristics, advantages and disadvantages: Alliances, Mergers and Acquisitions. Alliances An alliance is defined by collaboration between two or more companies to achieve common goals. Types of Alliances: Non-contractual (informal partnerships) Contractual (formal partnerships) With capital (investment in the partner) Joint venture (investment in a new entity) Usually, the reason for these occurring has to do with the need to expand resources and grasp new skills, and there is also flexibility in creating and dissolving the alliances. Fusions Entity mergers result in the merging of two or more companies into one. Although in paper seems an easy process, in fact many of the attempts do not even come to fruition, because there has to be compromise on both parties, both shareholders and the culture of each company. However, when successful, the advantages are numerous: Possibility of market diversification                                                                                           Increased brand reach Decrease in market risks                                                                                                              Better working conditions Acquisitions In the case of acquisitions, these result in the purchase of one company for another (in a friendly or hostile manner). As a rule, the company that purchases is bigger than the one acquired. Still, the reverse may happen. Acquisition occurs when one organization buys the holdings of another. Consequently, the acquired company must cease to exist, its processes, resources and departments should be adapted to those of the company from which it was purchased. This process of acquiring and adjusting all the details of the operation must be carried out in an appropriate manner and in a timely manner so as not to harm the external or internal customer. With regard to the advantages of the acquisitions, it can be said that they are very similar to those of the merger process. This publication is for informational purposes only. The Domingos Salvador Accounting Office is available to assist you in management advice. Do not hesitate to contact us to schedule a meeting: +351 227537270 or accounting@domingossalvador.pt.