Global economies are going through various changes, America import tariff is shaking global economies, Japan Economy has slide to fourth position and cost of living is so high, China and Vietnam companies are going for gorilla marketing to customers by aggressively engaging social media influencers to buy white label products from them and Nigeria removal of fuel subsidy has increased general cost of living. Particularly Nigeria’s Business Environment like others can be felt when you walk down some street in Lagos, Port Harcourt, Abuja or Kano, you’ll sometimes see the signs Shuttered shops, Closed factories, Empty offices and Half-completed buildings.
Behind those scenes are business owners struggling with:
- Rising inflation and skyrocketing interest rates
- Unpredictable foreign exchange policies
- Unstable energy supply and ballooning diesel costs
- Dwindling consumer purchasing power
- Shrinking margins across every sector
If this sounds familiar, you’re not alone. But here’s the real truth: surviving these times doesn’t require working harder or cutting corners. It requires thinking strategically—and sometimes that means joining forces, merging capabilities, or exiting smartly. This is where Mergers and Acquisitions (M&A) come in.
What Are Mergers and Acquisitions (M&A)?
M&A involves combining two or more businesses through:
- Mergers: Two businesses come together to operate as one (e.g., a struggling logistics company merges with a tech-enabled fleet management firm).
- Acquisitions: One business purchases another, either partially or wholly, to access its customers, assets, or market position.
Done right, M&A isn’t about giving up control—it’s about unlocking growth, spreading risks, and gaining competitive advantages that solo businesses can no longer afford to ignore.
7 Strategic Ways M&A Can Reshape Your Business for Success
Let’s break down exactly how M&A can help Nigerian business owners not just survive—but grow stronger:
1. Access to Capital—Without Expensive Bank Loans
Banks are tightening credit. Lending rates are now between 25%–30% for SMEs. For most Nigerian businesses, that’s unsustainable.
M&A gives you access to:
- Private equity partners
- International investors
- Strategic buyers with deep pockets
Whether you need funds for working capital, expansion, or debt repayment, the right deal can bring new life to your operations.
Example: A struggling agribusiness in Kaduna merged with an export-focused company. The result? A $500,000 injection for processing equipment, plus access to European buyers.
2. Cut Costs Through Shared Operations
By combining forces, you save on:
- Staff salaries
- Office rent
- Distribution and warehousing
- Marketing and tech expenses
M&A gives your business economies of scale—meaning lower costs, better margins, and stronger negotiating power with suppliers.
Sector Insight: In retail, two fashion stores merging can share an e-commerce platform and logistics partner, saving over 30% in monthly overhead.
3. Expand Into New Markets Without Starting From Scratch
Expansion is expensive. M&A gives you instant access to:
- New cities (Lagos to Enugu, Abuja to Kaduna)
- New sectors (a bakery acquires a frozen food delivery service)
- International markets (a fintech gets acquired by a UK firm and gains FCA credibility)
This strategy is how many Nigerian companies now serve cross-border markets like Ghana, Kenya, Malaysia or even the diaspora in the UK.
4. Level Up with Better Leadership, Tools, and Strategy
Even visionary founders need help. M&A allows you to:
- Join forces with companies that have strong governance
- Integrate advanced tech (ERP, CRM, automation tools)
- Get mentorship from global partners
Case Study: In 2020 Paystack, a Nigerian payment processing tech startup in Lagos was acquired by Stripe for 200M+A global payment processing company that processes payments for Amazon, Google, Shopify, and Zoom. They retained their Co-Founders, but gained other roles and probably international board members—which improved their valuation overtime and they have since been expanding to other African countries.
5. Boost Customer Trust & Brand Perception
A merger with a respected company—or acquisition by a bigger brand—immediately improves:
- Brand recognition
- Market positioning
- Investor interest
Consumers feel more confident when you’re backed by a larger, well-known entity. This is critical in sectors like healthcare, education, finance, and FMCG.
6. Exit Smartly—Not Silently
Are you burnt out? Facing bankruptcy? Losing money every month?
Instead of shutting down, consider:
- Selling your business or assets
- Structuring a merger that keeps your staff employed
- Becoming a minority partner in a stronger company
Matamah can help founders design exit plans that protect their legacy and ensure business continuity—even in hard times. In addition, various local or International potential investors can bring in diverse experienced team that can transform the company and in return they will enjoy instant market entry, access strategic sectors, leverage local knowledge, accelerated growth, market reach, leverage complementary strengths among others.
7. Jumpstart Digital Transformation Without the Burden
Let’s face it—most SMEs are not digitally ready. You can either:
- Build your own tech (expensive, risky, slow)
- Or merge with a tech-savvy business and integrate immediately
M&A enables digital acceleration—from mobile payments and inventory automation to AI-powered customer service.
Sector-Specific M&A Opportunities in Nigeria
Here’s how M&A is playing out in various industries:
- Fintech: Regulatory stress has led many local apps to partner or be acquired by licensed operators.
- Agro-processing: Farmers’ cooperatives merging with export-focused processors to meet volume demands.
- Healthcare: Private hospitals combining operations to invest in better diagnostics and shared labs.
- Education: Schools forming networks to leverage digital learning platforms and cut administrative costs.
- Logistics: Merging fleets and consolidating delivery networks to reduce diesel and maintenance costs.
Why Matamah Is Your Best M&A Partner in Nigeria
We’re not just another advisory firm—we’re Nigeria’s M&A specialists for companies.
Here’s what sets us apart:
- Experienced team with combined experiences in business strategy, finance, and regulatory compliance
- A strong pipeline of buyers, investors, and deal partners across Nigeria, Africa, and abroad
- End-to-end services:
• Due diligence
• Business valuation
• Deal negotiation
• Legal structuring
• Post-deal integration
Our clients call us “the fixers behind the scenes.” We quietly, professionally, and successfully help companies close deals that matter.
Want to Know If Your Business Is a Fit for M&A?
We’re offering a free, confidential M&A readiness session for serious business owners.
Together, we’ll assess:
- If you’re ready to sell, merge, or acquire
- What your business is really worth
- Who your ideal buyer or partner might be
- How to prepare for a successful transaction
Book Your Free Consultation
List Your Business with Us
Contact:
Matamah (a brand of Alowave Limited)
support@matamah.com | (+234) 080-9502-9999
www.matamah.com
FAQs About M&A in Nigeria
Q: Is M&A only for big businesses?
A: Not at all. Our M&A deals with all businesses with diverse revenue
Q: What happens to my staff in a merger?
A: Depending on the structure, most staff are retained—and may even gain better job security and benefits.
Q: How long does the process take?
A: Deals can close in 60 to 180 days depending on due diligence, legal, and financial alignment.
Q: Will people know my business is for sale?
A: Not necessarily. Matamah can handle all inquiries discreetly until a serious match is found.
Final Word: This Is Not the Time to Do It Alone
Nigeria is evolving fast—and the businesses that survive will be those that adapt fast.
Whether you want to scale, recover, or exit, M&A might be the smartest move you’ll ever make.
Let Matamah guide you through it with confidence, integrity, and proven results.
To get started, click here to get started , call us on (+234) 080-9502-9999 or support@matamah.com.
