As an up and coming venture, we at EMCO Trading Ltd, commenced as a mid-level recruitment agency specializing only in creating a professional presence for new companies. After undergoing a revamp to strengthen our position in this niche, we went on to create an online database integrating with numerous third-party jobs posting systems over a number of years to increase our client base; from new start-ups to multi-national organizations.
Today, the business holds its core focus in retail, real estate and offering virtual space for startups and new businesses. The business we acquire is able to provide the consumers with products or services that we sell through our own distribution channels.
EMCO has been active in trying to diversify its business as department store chains struggle to maintain their status in an evolving retail landscape. According to product-analysts, many of these segments are unable to compete with major Ecommerce businesses (like Amazon for e.g.). As a single channel business is no longer considered conducive, EMCO has strived to have a presence both online and in stores with multiple consolidations. As a result, we have now turned to mergers and acquisitions to accelerate our omnichannel strategy and capture increased market share. These consolidations (in the retail industry) mainly occur between traditional brick-and-mortar retailers and onlineonly retailers, (such as Walmart’s acquisition of menswear site Bonobos.)
We are also trying to bypass traditional brick-and-mortar retailers in favor of selling direct to consumer. The decision to form these acquisitions will strengthen the existing consumer-seller bond. In exchange our inventors served will access a dedicated, highly targeted marketing and distribution pipeline to fuel sustainable growth.
As a conglomerate, we aim to implement several key initiatives that will provide a true omnichannel shopping experience in order to give the consumers a seamless experience.
As our entity is a dynamic enterprise in an ever-changing macro environment, it can be monetized and grown to best find the permutation that yields the highest output. When carrying out mergers and acquisitions, corporate development teams: create a target list, value the companies in a financial model, negotiate terms of the deal, and integrate the acquisition into the company. Through the Investment phase we are able to use the existing technology to better harness our competitive strategy so we can outperform our competition. To carry out such strategies, corporate development professionals are skilled at corporate valuation, risk management, financial modeling, negotiation, and integration.
The Investment phase is a centralized function and it gives a birds-eye view of the organization, which in turn helps the professionals to better understand the factors that may prove to be advantageous or disadvantageous to the business
Established over 30 years ago, EMCO has been constantly innovating itself to keep up with the demands of time. We, as a team are constantly on the hunt for underserved market areas with high transaction volumes and undifferentiated channels that deliver margin growth. We are constantly evaluating our growth strategy, our options, the competitive landscape and the industry landscape in order to keep with the changing times.
Many retail industries struggling amid falling foot traffic and rising e-commerce, become the target of private equity buyers. As competition heats up and organic growth becomes increasingly difficult in the brick-and-mortar retail environment. This is why the operators of EMCO have used acquisitions to expand their reach. For this purpose, EMCO has managed to penetrate into e-commerce and is now researching new ways to compete with B2B and B2C businesses.
With our mergers in the retail industry comes an immediate diversification in the products, services and the long-term opportunities for our business. The benefit of doing so is the ability to bring more revenue into the business. With increased economic productivity, our business can further expand its reach and increase its market share. Additionally, the industry’s products have now become increasingly accessible and affordable online which may not have immediate effects on industry dynamics, but it does add to the organization’s already heightened sense of growth.
Acquisitions can fuel many different goals beyond simply buying up the competition. Mature industries especially are consolidating, and multiple factors drive this rising M&A activity. Overall, an acquisition will boost an entity’s market share and enable the company to be more competitive. These growth opportunities are also witnessed by the number of strategic alliances that are formed by the entities.
These alliances bring added benefits of speeding up the entity’s entry into the foreign markets. It also helps the entity to adopt to the foreign environment at a much faster pace. Strategic alliances enable the companies involved in the alliance to manage their risk better, leverage core capabilities and assets learn the relevant business practices faster than would have been possible otherwise. They are especially prudent as they have allowed EMCO to enter into new and emerging markets like India, China, and Brazil. This gives the entity an added edge as this results in a much efficient use of the capital.