How Business Strategy and Consulting Can Revive Manufacturing Through Mergers
The manufacturing world is facing a “perfect storm.” In 2025, global factory costs rose by 5.8%, while demand in many sectors stayed flat or dropped. When orders fall and bills rise, even the best factories can struggle. For many leaders, the old way of just “cutting costs” is no longer enough. This is where business strategy and consulting come in as a lifeline. Expert merger and acquisition consulting can turn a struggling factory into a powerful part of a larger, more successful group. This article explains how these services guide companies toward growth recovery through smart mergers.
The Big Challenge: Why Factories are Struggling
Today, manufacturers face a three-part problem:
- Falling Demand: Buyers are spending less, leading to lower sales.
- Higher Costs: Prices for energy, raw materials, and transport are at record highs.
- Weak Profits: High debt and slow production lines make it hard to stay in the green.
How Business Strategy and Consulting Make Mergers Work
Professional business strategy and consulting acts like a master plan for a company’s second chance. They don’t just find a buyer; they make sure the deal actually fixes the business.
1. Finding the Real Problem
Before any merger, a management consulting firm does a “health check.” They look at whether the company is failing because of bad luck or bad processes. This stage often includes crisis management to save cash and debt restructuring to handle loans.
2. Setting a Clear M&A Strategy
Not all mergers are the same. A corporate strategy consultant helps you choose the right path:
- Horizontal Mergers: Joining with a competitor to own more of the market.
- Vertical Mergers: Buying a supplier to lower the cost of raw materials.
- Tech Acquisitions: Buying a smaller firm to get new AI or “Industry 4.0” tools.
3. Using Accurate Company Valuation
One of the hardest parts of a merger is agreeing on a price. Company valuation consultants use business valuation services to find the true worth of your factory. This includes your machines, your patents, and your brand. This prevents you from selling too cheaply during a market dip.
Global Data: Why Mergers are Booming
The importance of expert merger & acquisition strategy is clear from the latest industry data:
- Global Rebound: Worldwide merger and acquisition activity reached nearly $4.9 trillion in 2025, making it one of the strongest years on record.
- India’s Momentum: Merger activity in India increased by 37% in the latter part of 2025, crossing $26 billion as domestic businesses combined forces to remain competitive.
- Better Outcomes: Businesses that follow a structured and ongoing M&A strategy achieve around 6% higher returns compared to companies that rush into a single large deal during financial stress.
Steps to Recovery Through Mergers
| Phase | What Happens | The Role of Consulting |
| Step 1 | Stabilisation | Financial consulting services help manage debt and cash. |
| Step 2 | Target Search | An m&a advisory firm finds the perfect partner. |
| Step 3 | Due Diligence | M&a strategy experts check for hidden risks and legal issues. |
| Step 4 | Integration | Management consultancy companies help the two firms work as one. |
Real-World Success: From Loss to Leadership
Think of a mid-sized car parts maker in India. They had great products but too much debt. By hiring a business consulting firm in Mumbai, they found a merger partner in the electric vehicle (EV) space.
Through a smart merger & acquisition strategy, they combined their expert workers with the partner’s big cash reserves. Within a year, they went from losing money to leading the local EV parts market. This shows how business strategy and consulting can turn a crisis into a victory.
Future Trends: What’s Next in 2026?
The future of manufacturing is “Smart.” Best strategy consulting companies are now helping firms merge to gain:
- AI and Automation: Using robots to cut labour costs.
- Green Energy: Merging to meet new environmental rules.
- Reshoring: Bringing factories back home to avoid trade wars.
Actionable Advice for Business Leaders
- Don’t Wait: Start business strategy and consulting early. If you wait until you are out of money, you lose your power to negotiate.
- Fix the Books First: Use financial advisory and debt restructuring to look more attractive to buyers.
- Check the Law: Work with top regulatory compliance consulting firms and m&a legal experts to avoid future lawsuits.
- Prioritise Culture: Most mergers fail because people don’t get along. Use a management consulting firm in India to help blend your teams.
Frequently Asked Question
Why do I need business strategy and consulting before a merger?
It helps you confirm whether a merger is the right solution or not. Clear strategy before a deal reduces failure risk and avoids costly mistakes.
What do merger and acquisition consultants actually do?
They manage the entire process, including target search, valuation, due diligence, legal coordination, and deal closure to ensure fairness.
How does company valuation work?
Valuation reviews past performance, asset quality, liabilities, and future earning potential to determine a fair market value.
How do mergers help when demand is falling?
Mergers expand customer reach and allow companies to share costs. This improves profitability even when overall sales volumes are lower.
Is debt restructuring necessary before a merger?
In many cases, yes. Restructuring debt improves financial stability and makes the company more attractive for a merger.
What is the biggest risk in a merger?
Poor integration. Most failed mergers struggle because operations, teams, and systems are not aligned after the deal.
Conclusion
The path ahead for manufacturing is not easy, but it is full of chances. While rising costs are a challenge, they are also a reason to evolve. With the right business strategy and consulting, you can turn a period of decline into a recovery story. Mergers are no longer just for the giants they are a tool for any leader ready to build a more resilient future.
About Solvencis
Solvencis delivers cutting-edge Hybrid Consulting Solutions across Management, Finance, Technology, and Legal Services to ambitious businesses worldwide. Recognised for our cross-functional expertise and hybrid consulting approach, we empower startups, SMEs, and enterprises to scale efficiently, innovate boldly, and navigate complexity with confidence.
Our services include:
- Investment Banking
- Fundraising
- Mergers & Acquisitions
- Private Placement
- Debt Restructuring & Transformation
- Legal Services
With an integrated consulting model, fixed-cost engagements, and a virtual delivery framework, Solvencis makes business transformation accessible, agile, and impactful.
For expert guidance, Email Us: inquiry@solvencis.com.
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