Mergers and Acquisitions
in the Language Services Industry
Do you want to break through a business plateau with inorganic growth? Mergers & Acquisitions (M&A) have become one of the main corporate tools for companies looking to produce big wins. It’s not simple though: bringing organizations together through M&A is among the most complex business activities. We assist small and medium-sized sellers and buyers at every step of the way, providing guidance on M&A transactions.
Getting Ready for M&A
As Mergers & Acquisitions become increasingly popular within the Language Industry, many small and medium-sized company owners are now considering it as the option to drive exponential growth or capitalize on the effort of a lifetime.
Coming around to the idea of M&A means answering every possible question you may have along the way:
- How can M&A accelerate my company growth?
- Is my company big enough for an M&A transaction?
- When might be the right time to sell?
- How big a company could I buy?
- Is the company ready for sale, or should the focus be on building value for a future sale?
- How much is my company worth?
- How long does it take to close the deal?
- What happens after the closing?
- How much will this all cost me?
- What happens after the closing?
- How much will this all cost me?
A look at some recent deals in the language services industry
Lexcera: The right strategic move for t'works
The deal reinforces t’works aims for expansion in Europe, considering that 35–40% of their customers are already located outside Germany.
ElaN Languages and OneLiner opted for merger over full-acquisition
A merger is a good fit when both companies share an excellent reputation in their respective markets. The new group combines EUR 13m in revenue and looks to tap on the government tender market.
By acquiring NZTC, Strakers continues to extend its presence in the Asia Pacific region
In February 2020 Straker acquired local rival New Zealand Translation Centre Limited International for USD 1.1m — 0.4x revenues.
The Key Drivers for M&A
The transaction bases within the language services industry follow the same logic as M&A in other industries and vertical markets.
What do you look for as a buyer?
- Growing inorganically
- Expanding to a new region or into new vertical markets
- Acquiring seller’s technology
- Diversifying your portfolio
What do you look for when selling or merging?
- Becoming part of a more robust platform for growth
- Scaling your business operations
- Monetizing the investment of a lifetime
- Exiting your business entirely (retire, focus on other projects)
Determining a Company's Market Value
Business valuation is a critical component of the M&A process, as it is the first step to determine how much your company is worth or how much you should pay for the business you would like to acquire.
How We Can Help
Are you a small or medium-sized Language Service Provider (LSP) looking for opportunities in Europe with significant upside potential? If so, we can help you understand how M&A might serve your longer-term goals. We offer both Business Broker and M&A Advisory Services.
Business Broker Services
We work with Buyers to understand their goals and identify quality companies for sale to acquire.