Mergers and acquisitions (M&A) refers to an agreement
that happens between two existing companies. This could result to the formation
of a new company altogether or the larger company completely takes over the
smaller company. M&A is not easy as it may sound rather is the complex subject
that deals with the financial aspects of the organization. Apart from the
financial stability, there are various other reasons to agree to a merger and
acquisition including synergy of both the companies involved, expansion of the
business reach and increasing the shareholder value.
Often, merger and acquisition is considered as single term
but they both are different from each other. Merger happens when two companies
of similar size join hands to work as a single entity while acquisition refers
to a complete takeover of one larger company over the other smaller company. In
acquisition all the operations of the acquired company are taken over and it
ceases to exist and the acquirer company becomes the new owner.
Group50, a renowned mergers andacquisitions consulting firm excels at the development of prospective relationships needed to
support expansion and help clients identify and capture every technical
advantage. Their merger & acquisition consultants work in support of
investment objectives to help you and your management teams capitalize on
transformational growth opportunities. They can help identify funding,
partnership and client opportunities that will help your businesses achieve
greater market share, recognize better cost efficiencies and deliver greater
customer and partner satisfaction.
The primary steps
involved in mergers and acquisitions process are listed below:
·
Analysis
and commitment
·
Due
diligence
·
Planning
and close
·
Integration
·
Align
and optimize
Mergers and acquisition
process is carried out by having an understanding of these aspects:
·
Growth
objectives
·
Identifying
strategic and operating gaps
·
Understanding
existing internal resources
·
Understanding
externally available resources
·
Creating
relationships that drive results
Some of the major
advantages of merger and acquisitions (M&A) process includes:
·
The
collaboration happened because of two companies enables in improving business
performance, drive efficiencies and increased financial gains.
·
Due
to the involvement of two entities, it increases the market share and widens
the customer base.
·
It
results in cost reduction because of the increased purchasing power and shared
marketing budgets.
·
The
combination of resources of two companies helps driving an advantage over the
competitors.
·
It
gains newer market and sales opportunities due to diversification or
combination of the products, services and long-term prospects of businesses.
Contact Group50, one of the renowned merger and acquisition consulting firms that can help you realize the
investment potential of the companies and teams in which you are invested,
whether you an operating partner, private equity firm or investment
professional. Their consultants have led, planned and implemented the
integration of mergers and acquisitions in many different industries and
companies of all sizes including P&G, GE, Black & Decker, Champion
Arrowhead, Sunbeam and many others. They provide unique methodologies and tools
for successfully planning and executing a merger or acquisition.