April has always been a month of new beginnings. The 14^th of April is a significant day not only in India, but also for most Asian countries. It is the Tamil Puthandu and it is also known as the Tamil New Year as it marks the first day of the year on the Tamil calendar. Set with the solar cycle of the Hindu calendar, it is the first day of ‘Chithirai’ that usually falls on or around 14 April every year on the Gregorian calendar.

Why am I talking about this? Well, this 14^th of April, Focus Infotech would reach our 22^nd year of operation. Just before we reached that milestone, new avenues and opportunities have opened up for us as a company. Interestingly, the word ‘April’, derived from the Latin word ‘aperit’, means to ‘open’. It is so since it is the growing season when trees and flowers begin to ‘open’ and in the same way, we at Focus Infotech are at that exciting opening phase now.

A public listed company from Japan has acquired a majority stake in Focus Infotech and they have taken a strategic interest in our company. A strategic acquisition is one of the most important means of growth for any business. The closing process happened a few weeks ago. I had mixed feelings during the same. It is a feeling of great achievement as we are giving an exit to the financial investors and bringing in new investors. The value we have added to investors gives me a deep sense of satisfaction.

At this juncture, let me mention a few reasons why acquisitions and mergers are good for companies:

Funds and Assets

With mergers and acquisitions, there is a better access to funds and also assets of each other. The unused capacity of the company can be utilized and there is also more funds for expansion.

Reducing Competition

Acquisition speeds up growth and this has a huge role to play in increasing your market share. If there are very big players in the market, an acquisition levels the field.

Reducing costs and overheads

Acquisition also increases the purchasing power. This is possible through shared marketing budget and it ultimately translates to lower costs and overheads.

Diversification of products and services

Through this, businesses will be able to get access to products or services that can in turn be sold through your own distribution channels. It is a win-win.

Obtaining Quality staff/knowledge

Businesses can gain resources and competencies with acquisitions. They can even help in immediate revenue increase and better chances at raising growth capital.

Weathering Economic Slumps

Acquisitions can also support a company when there are periods of economic or market slumps.

I am happy that the organisation that we build has the opportunity to grow and serve even after my time. It is almost like handing over a daughter at her wedding in order for her to have a brighter future. There are many stake holders who have worked with the organization in various phases. I would like to take this opportunity to thank all of them. The promoters still continue to grow the business. I would like to thank everyone for their kind wishes on the double celebration.

Till the next milestone! – MVS