2023 will be the year of consolidations and acquisitions
After the highs of 2021 the stalemate of 2022 now finally comes the lows of 2023 which may very well extend into 2024 too. However, every dark cloud has a sliver lining similarly every low has something to cheer for.
2023 will indeed be tough for the startups but not for those who are flexible and adaptable, not for those who are ready to adapt according to the circumstances. In order to survive many startups will merge with their competitors or may even get acquired by a bigger firm leading to consolidations and corrections. Therefore, 2023 will be the year of consolidations and acquisitions.
This is not the first time and certainly not the last when a slew of mergers and acquisitions will take place. Whenever the market conditions get tough its not uncommon for firms to merge with one another or get acquired so as to survive and take advantages of mutual pooled resources. 2008, 2009, 2010 following the Great Recession 2008; in 2015, 2016 post the startup bubble burst in India.
Why startups consolidate?
Consolidation offers the merged or acquired companies the advantages of shared resources, existing customer base and expertise. And most importantly it reduces the expenses and competition of the companies. Consolidation is one of the best strategies during downtimes. Those companies who have limited resources ultimately become bankrupt if they stay stubborn and refuse to merge or get acquired.
