SWOT Analysis for Merger & Acquisition Transactions

Contact Neufeld Legal PC for corporate transactional and legal matters at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

SWOT Analysis. A SWOT [strengths, weaknesses, opportunities and threats] analysis of your business will provide the foundation from which you can determine how your business shall be building upon its strengths, resolving its weaknesses, optimizing its opportunities and avoiding threats.

Characteristics in a SWOT Analysis:

STRENGTHS

- good financial position [not overleveraged or heavily indebted]

- skilled labor force [little if any additional training required]

- existence of strong goodwill [good reputation and business name]

- latest machinery and application of advanced innovative strategies

- accessible transportation linkages

- little, if any, substantive competition

WEAKNESSES

- poor financial position [highly leveraged, heavily indebted]

- unskilled and/or inadequately trained workforce [thereby requiring significant additional training]

- lack of goodwill and/or name reputation

- antiquated machinery / equipment, combined with the lack of innovation

- poor location [inefficient transportation linkages, inopportune for workforce]

- challenges associated with a share ownership [holding too much or too little corporate securities]

- too much waste

OPPORTUNITIES

- good financial position creating a favorable reputation for future bank financing

- skilled labor force [creating efficiencies so as to optimize the business]

- competitor goes bankrupt

- increased application of technological innovations

- increased spending power

- introducing products and/or services to new market sectors

THREATS

- large and increased competition

- rising cost of salary and benefits

- possible necessity to relocate as a result of the inadequacy of the present location

- legal, regulatory and political challenges and impediments to development

- increasing bank charges and interest rates

- if existing product and/or services are becoming unfashionable or unpopular .

When it comes to the legal component of corporate mergers & acquisitions, that is when the law firm of Neufeld Legal P.C. comes into play. Such that when your company is seeking knowledgeable and experienced legal representation in orchestrating and completing business mergers, acquisitions and divestitures, contact us at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or Chris@NeufeldLegal.com.