Intended to increase the value of companies, mergers and acquisitions are very complex and may cause a lot of headaches, as companies planning such transactions must pay special attention to structuring and execution. Just to make the whole process easier, a professional business consulting company can help you with quality services.
In making a successful merger and acquisition transaction, every detail is especially important. In the first phase, it is crucial to assess the risks, and this is where a business consulting firm can turn to be particularly helpful. It will evaluate the risks to which you expose your business, either when you want to merge with another company, or when you want to sell your company.
Mergers and acquisitions consultants offer services to different companies and potential investors. The services are addressed to shareholders of an unlisted company on the stock exchange, who want to sell the participation to financial or strategic investors who are interested to acquire a participation in an unlisted company, as well as to the shareholders who need consultancy to expand the company’s activity to new business lines or for the development of complex projects.
In some cases, as part of professional alliances for mergers and acquisitions companies, they approach mergers and acquisitions services globally.
M&A consultants help their clients to discover extraordinary opportunities, often in unexpected places. With them as partners, any client is equipped with the ability to navigate changes in the market or industry and to move in new creative and strong directions, fulfilling their long-term vision.
Whether a client’s goal is to increase market share, to concentrate or diversify the company’s activity, to make better use of financial resources, or to exploit strategic synergies, mergers and acquisitions consultants mobilize a set of dedicated activities to search, structure and successfully close the acquisition process.
These professionals provide assistance in different processes, including:
Sales – In this case, assistance is provided through comprehensive analysis and evaluation of the company. Through the distribution network, they help identifying potential buyers, whether they are strategic investors or private equity funds.
Acquisition – by identifying and evaluating potential target companies, according to the client’s objectives, namely: increasing market share, diversifying products and services, using excess cash for strategic investments and potential synergies.
Mergers – either by absorption or by merging, by assessing the operational and financial synergies and quantifying the impact they have on the value of the newly formed company.
Various spin-off, split-off, split-out and carve-out transactions.
Leverage Buyout (LBO) – the process of acquiring a company or business division – “target company” – using financing for part of the amount of money needed for the transaction.
Management Buyout (MBO) – this is a LBO type transaction, initiated and coordinated by the existing management team that wants to acquire the company.
Joint Venture (JV) – Economic agreement in which two or more parties agree to combine certain resources in order to carry out a specific activity or project.