Choosing the right business partner is a difficult task always. Merger And Acquisition are done to yield accurate results for the task. Merger And Acquisition is a task associated with the corporate finances, management, and strategy through which we deal with the purchase, extension, or division of companies. This can be also referred to as a “merger of equals” as they involve companies of similar size and state. Merger and Acquisition must be carried out with considering the key factors like Tax implications, Product/service compatibility, and Competitive tactics and position along with the cash flow and financial impacts. Merger and Acquisition can be done for a large variety of businesses including I.T, Pharmacy, Biotechnology, Biology, Chemistry, Electrical – Electronics, Agriculture, Textiles, e.t.c.
Merger And Acquisition
Why Perform Merger And Acquisition?
To strengthen the existence and presence of a business firm in the market
To achieve administrative benefits from significant market players
To support the market launch of a new product or service with deep research and development of the market
To enhance the employee benefits and satisfaction, this varies for the different business environments
To offer superior services and products for premium client satisfaction and fulfilment
Why We?
To analyse a deal in-depth, by considering the tax risks
Analysing the acquisition and holding structure
Optimising the Investor expenses on exit
Implementation of the deal strategy
Preparing to satisfy the bank’s lending criteria before the fund release
Ensuring suitable incentives for the management after the deal
What Do We Do?
Follows global standard practises
Analyse the tax risks associated with the transaction and acquisition/merger risk
Acquisition before tax due diligence
Structure the deal with optimal investment returns and free cash flows
Fund structuring
Groom businesses for their disposal
Groom businesses for their initial public offering
Paper works associated with your transaction and analysing the fund management
Structuring tax practises for co-investors and/or management
Merger Structures
Horizontal Merger
When two companies combine into a single entity, where both are offering similar goods or services.
Vertical Merger
When two companies combine into a single entity, to produce a specific finished product.
Homogeneous Merger
When two companies combine into a single entity, where both have the same consumer base in different ways.
Market Extension Merger
When two companies combine into a single entity, where both deal with the same products but compete in separate markets.
Product Extension Merger
When two companies combine into a single entity, where both deal with products that are related to each other and operate in the same market.
Conglomerate Merger
When two companies combine into a single entity, where both are involved in totally unrelated business activities.
Differences Between Mergers And Acquisitions?
Returns:
If the return paid to the company shareholders is monetary and not stocks, the transaction is referred to as an acquisition, not a merger, and if the return stocks, the process is a merger, not an acquisition.
Company Fate:
If a company does not cease to exist after another company buys its equities, the transaction is an acquisition, not a merger. Yet, if a company sells its shares and dissolves in the acquiring company and ceases to exist or both companies, the acquirer and acquiree, expire leading the way for a new company to emerge, the transaction is a merger and not an acquisition.
With high commitment and dedication, we execute mergers and acquisition consultants for all sorts of strategic needs such as Portfolio strategy, Strategic and operating model assessment, Target screening, and Deal structuring.