This call comes in light of the many regional and international security companies establishing bases in St. Lucia.
In today’s competitive business market local businesses in St. Lucia and throughout the region need to begin considering forming mergers. The trend in St Lucia seems to be that everybody is “trying to do their own thing” but he believes there are lots of benefits from merging. One of the primary reasons why businesses merge is to increase capabilities for development opportunities and expansion.
It is a norm that most small businesses fail to expand. This is due mostly to financial challenges and to a lesser extent, complacency on the part of the entrepreneur. Another reason for merging is the diversification of goods and services- two companies can combine their goods and services to gain a competitive edge over others in the market place (as we saw happening with super J).
In St. Lucia today, local security businesses seem to be fighting off regional and international security companies who are well able to outspend them. In order for local businesses to compete effectively and reduce their operating cost they must consider forming mergers. Some significant benefits of a merger are that it assists in replacing leadership after a company owner wishes to consider retirement and ensures the survival of the business. In most small companies the owners can’t identify someone to succeed them.
It is never easy for a company to give up its identity as forming mergers usually results in a change of name, logo and slogan, but sometimes it is necessary to stimulate growth, increase capital, improve financial capabilities and ensuring its survival in the midst of a financial crisis.