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Merger & Acquisitions

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Merger & Acquisitions

Merger & Acquisitions

WHAT IS MERGERS & ACQUISITIONS?

Merger & Acquisitions advisory is a combination of two or more companies into one, wherein the merging companies lose their identities. No fresh investment is made during this procedure. However, an exchange of shares takes place between the companies involved in such a process. Generally, the company that lasts is the buyer which preserves its identity and the seller company is extinguished.

India is the second-fastest emerging economy in the world. Investors, big companies, industrial houses view the Indian market in a rising and flourishing phase, whereby returns on capital and the shareholder returns are high. Both merger and acquisitions have increased dramatically.

MERGERS ARE IN TRUTH ACQUISITIONS

Under Mergers and Acquisitions Advisory, one business buys another and incorporates it into its business model. Because of misuse of the term merger, most of the information on mergers are presented for the joint mergers and acquisitions (M&A Advisory) that are happening. This gives a wider and more precise view of the merger market.

What are the major reasons behind Mergers and Acquisitions Advisory?

The basic reason behind mergers and acquisitions services is that organizations combine and form a single entity to attain economies of scale, widen their reach, obtain strategic skills, and advance competitive advantage.

In simple terms, mergers are considered as a significant tool by companies to increase their operation and increase their profits. Indian markets have seen a growing trend in mergers which may be due to the business alliance by large industrial houses, merging of business by MNC’s operating in India, growing competition against imports and acquisition activities.

Advantages of Merger & Acquisitions
Retrieving new markets
Maintenance of growth momentum
Acquiring international brands and visibility
Buying cutting edge technology instead of importing it
Global competition
Improving operating margins
Evolving new product mixes
M&A ADVISORY SERVICES Types of Mergers

We offer all aspects of M&A advisory under Mergers and Acquisition services, providing critical assistance in the following areas:

  • Appraising and evaluating companies
  • Designing and executing an acquisition strategy
  • Introducing probable buyers or sellers
  • Providing supervision for the timing of specific transactions
  • Developing and formulating offering memorandums
  • Negotiation of sale agreements or terms of a purchase
  • Intermediating the compromise of compensation agreements with management teams
  • Negotiating agreements with capital sources for deal funding

Basically, mergers are classified into three broad category:

  1. Horizontal merger: When two companies are in direct competition and share the same product lines and markets i.e. it results in the consolidation of firms that are a direct competitor.
  2. Vertical merger: Where exists a customer and business or a supplier and corporation i.e. merger of firms that have a definite and potential buyer-seller relationship.
  3. Conglomerate merger: Merger between companies which do not have any common business areas or no common relationship of any kind. Consolidated companies may sell related products or share marketing and distribution channels or production processes.

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