Mergers and Acquisitions - Solution to a business problem and an effective growth strategy Mergers and acquisitions (M&A) are considered the complex subject that deals with the financial aspects of the organization. It is basically an agreement that happens between two existing companies to form a new company or one company completely takes over the other. There are many reasons for doing that such as the expansion of the business reach, synergy of the two companies involved, increasing the shareholder value etc. Difference between merger and acquisition Merger is the combination of two companies to form a one. In this, the acquired company seizes to exist and becomes a part of the acquiring company. Acquisition, on the other hand, is when one company takes over the other. In this, the majority stakes of the acquired company are taken over by the acquirer company. Simply, it can be put as buying of one company by the other and the acquiring company continues to exist. Group50, a renowned 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. Steps involved in mergers and acquisitions process Analysis and commitment In this step, strategies are developed and all the growth opportunities are aligned to the strategic objectives. All the potential targets are identified in terms of financial, products and people. A communication plan is developed and if everything goes well between both the
companies, the initial negotiation of all the deal terms is done. Other factors such as defining the synergies, how to acquire funding and others are taken care in this step. Due diligence In due diligence, a thorough review of all the operating processes is done of the targeted entity. The current state, the corporate risks as well as the financial decisions are evaluated and validated. The contract is reviewed so that there is no discrepancy in the information. Planning and close On the approval of both the companies involved, the final agreement is drafted which defines and create task forces, analysis process, future state, organizational structure, communication strategy, skills needed, staffing levels, operating budgets, the target cost reductions and the future state. The timelines are also set and once the agreement is finalized, both the parties sign the documents and the deal is closed. Integration Post the deal closure, both the companies work together. All the resources, processes, systems, plans and commitments are evaluated and strategies are implemented to start the course of action. The sales force and the supply chain are also integrated during this step. Align and optimize This step is the final step of merger and acquisition process. In this, strategic plans are realigned to the business objectives. All the critical business processes are optimized and the operating adjustments and the cultural integration are done. Also, it includes a management review and merger & acquisition results audit. Contact Group50, a leading 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.
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