Mergers and acquisitions are the commonly heard
terms in businesses that are referred for the amalgamation of companies. Merger
is the process when two companies come together to form a single entity. On the
other hand, acquisition refers to the process in which the larger company takes
over a smaller company. In acquisitions, the bigger company buys out a
considerate portion of another company’s stocks. Both the processes are almost
similar to each other. But one thing is excluded in mergers that existing shareholders
of both the companies maintain a shared interest in the newly enlarged entity
formed.
Group50, one of the leading mergers and acquisitions consulting firms offers a unique approach to successfully overcoming the
standard result of 83% of acquisitions not meeting their financial commitment.
Their consultants have led or participated in over 30 mergers and acquisitions
for businesses of all sizes. They possess a unique set of skills for supporting
the merger and acquisition strategies. They have a five stage approach and in
this, each of the stage is designed to align, integrate and optimize the
combined companies with a focus on meeting or exceeding the expecting returns.
There are
various reasons why mergers and acquisitions are carried out:
This can be undertaken because of several
reasons. Of course, some of them may be advantageous and some may be not. One
of the major reasons is to save on taxes. The combined losses of the acquired
company can be set off against the combined profits of the acquiring company.
It results in huge tax savings.
Another significant reason for this strategy to
be carried out is gaining greater market share. Most of the companies come together
to improve their business. Two companies that manufacture different yet
complimentary products carry out mergers and acquisitions.
Merger and acquisition leads to cost efficiency as it
improves the purchasing power of the companies. The cost cutting generated
through staff reduction also increases the profit margins of the
companies.
With successful mergers and
acquisitions, the expected synergies are materialized in terms of more
efficient processes and operations, increased market share, increased profitability
and better growth opportunities.
Group50’s mergers and acquisitions 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 understand strategy execution
and how to plan and implement the entire process from conception to completion.
They have also set up relationships with strategic partners who complement
their capabilities.
They provide unique methodologies and
tools for successfully planning and executing merger and acquisition process
and to know more, you can get in touch with them.
