Mergers and acquisition has been a very interesting point in business. We have seen how some firms in the retail sector have been struggling to strike a deal. Let me not mention any names.
Today, this post is about mergers and acquisition. I am still a student with an interest in business affairs, having said that I am merely saying that my posts are based on readings and podcasts, very reliable sources for that matter.
Mergers and acquisition refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity. (Wikipedia,2010)
I was recently deeply inspired to follow a career in auditing. Ok, it is not like I was never interested in Auditing, I have always been, but with lots helluva doubts. Today, those doubts have been removed because two of the major black auditing firms, Sizwe Ntsaluba and Gobodo Inc are now sleeping in the same blanket. Oops, for the informal language, I mean these two firms have merged. Sizwe and Gobodo are headed by Victor Sekese and Nonkululeko Gobodo respectively. Both these firms have a good track record in the accounting sector. They have been in business for at least 25 years.
This merger comes at the right time in the accounting sector because it boast the black economic empowerment in the industry. Further than that, the thing I like about mergers is that it eliminate unnecessary competition, and it also increases the market share for the two combining firms.
The executive chairman Nonkululeko Gobodo said:
We intend on multiplying the firm in terms of number of staff and revenue within a short space of time. It will be the new house for black professionals.
The new company will be known as SizweNtsaluba & Gobodo. Will SizweNtsaluba & Gobodo be a big player outside of the big 4? The merger make this new company the fifth largest accounting firm in South Africa following The Big 4.
Matlhatsi le mahlogonolo go lena, Victor le Nonkululeko. You are an inspiration to upcoming black auditors. To change the subject, do you know that the music industry is in trouble? That is reflected by EMI’s $2.5 billion loss last year. All thanks to iSomething!!!!!
The picture above shows the company’s’ head Nkululeko Gobodo who sit as the executive chairman and Victor Sekese who is at the helm of the business as the CEO. The gentleman behind them is the transaction adviser Mr Bartlett Hewu.
Source: Business Day