Day: October 13, 2025

A common measure of economic growth is gross domestic product (GDP), a measure of all goods and services produced by a nation. GDP includes the sale of raw materials, production, and distribution of goods. It also includes the value of foreign trade and services, as well as the income sent home by citizens who work abroad.

Economies that grow faster are better off overall than those that do not. Faster economic growth increases the overall size of a country’s economy, strengthens fiscal conditions and broadens a typical household’s material standard of living.

There are many ways to achieve economic growth, including expanding labor, increasing the output of existing resources, and investing in new technology. Expanding labor – through native population growth and immigration – increases potential economic output, as does growing the productive capacity of current workers by investing in tangible capital goods like machines, offices and factories or intangible assets such as computer software and research and development.

Investments in physical and human capital are essential for growth, but they must be matched by an increase in the supply of money to finance them. This can be achieved through a combination of lower taxes and more investment in public goods such as education and health care or through private sector spending on investment in machinery, computers, roads, bridges and other physical infrastructure or in research and development.

In the past, large structural reforms accompanied nearly every growth acceleration episode in Europe and Latin America but were less frequent in South Asia or Sub-Saharan Africa. In general, however, luck played a large role in growth acceleration episodes, as did differences in institutions and natural endowments.

An acquisition deal happens when one company buys and takes control of another, acquiring assets and absorbing liabilities. Companies acquire other businesses for a variety of reasons, including economies of scale, strategic fit, increased market share, and access to new technologies. An acquisition is usually a friendly endeavor that involves the target firm’s board of directors agreeing to be acquired. The process begins by researching potential acquisition targets and conducting preliminary due diligence. Once a shortlist has been created, focus on gathering strategic insights to identify the best opportunities and ensure that the transaction will be beneficial for your organization.

Negotiations are often challenging, especially when the valuation gap between the two companies is wide. Be prepared with data-backed justifications for your offer and prioritize non-monetary concessions that create value without inflating costs. Many business owners have strong emotional ties to their legacy companies, so be patient and communicate with empathy.

The final phase of an M&A transaction includes executing contracts, filing UCC1 and UCC3 forms, and conducting post-closing searches to ensure the appropriate recording of ownership information in government records. The goal is to complete the acquisition process and fully integrate the companies’ operations, systems, and teams. This is often a time-consuming and costly endeavor, so careful planning and execution are essential to ensure a successful integration. During this phase, the acquiring company will also work to obtain financing and consider long-term debt management strategies to ensure the financial health of the combined entity.