Merger and Acquisition - Process and its various stages Merger and Acquisition is an important aspect of corporate finance and companies keep evaluating different opportunities through this with an objective of wealth maximization. Large cash positions coupled with historically low interest rates make mergers and acquisitions an obvious strategic choice for companies to significantly improve their performance. As companies increase their mergers and acquisitions activity, there is a need for a well thought through program that assures the successful integration of new companies with different cultures and business processes. There are various reasons for Mergers and Acquisitions which are as follows:
Financial alliance for lower cost of capital For improving company’s performance and stimulating growth Economies of scale Diversification for higher growth markets For increasing market share Strategic realignment and technological change Tax considerations
It is a complex process which is divided into various stages. All these stages are interconnected and it is critical for organizations to understand that each stage has its unique challenges and opportunities. Group50 is one of the best Merger and Acquisition consulting firms that provides a unique set of skills for supporting mergers and acquisitions strategies. Their merger and acquisition life cycle is typically categorized into 5 stages: Stage 1 Analysis and Commitment This stage involves a detailed analysis to have a clear idea about what is expected to gain from making the acquisition and what the organization’s purpose is for acquiring the target company.
Stage 2 Due Diligence Due diligence is a complete process that focuses on every aspect of the business from intellectual property, assets and liabilities to human resource and finances. Stage 3 Planning and Close According to the search criteria, the organization makes contact with one or more companies that seem to provide good value. The purpose is to get more details about the target company and to evaluate how amenable to a merger or acquisition that particular company is. Stage 4 Integration This stage starts when the merger or the acquisition deal closes. The management teams of both the organizations (acquirer and target), work in collaboration on the process of merging the two firms. Stage 5 Alignment and Optimization This final stage of the M&A cycle provides the operating team with the necessary tools and skills to successfully complete the integration and begins to realize the full potential of the transaction. It is dynamic process that provides leadership team of the integrated company with detailed plans and resources to support optimizing the integrated entity. Group50 provides mergers and acquisitions consulting for investors and private equity firms and to middle market companies. Their pre and post-acquisition strategies offer business redesign optimization, cost takeout and corporate operational restructuring that yields great opportunities for growth improvement in financial performance. Their consultants will help you identify funding, partnership and client opportunities that will help your business achieve greater market share, recognize better cost efficiencies and deliver greater customer and partner satisfaction.
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