Understanding Merger & Acquisition Process and Their Variations Merger and acquisition refers to the consolidation of two companies into one which involves financial transactions, corporate strategy and management. There are various reasons for which companies agree for merger and acquisition such as to achieve synergy, eliminate competition etc. Acquisition refers to when a company takes over the other company and all its operations. The acquired company ceases to exist and the acquirer becomes the new owner. Merger on the other hand refers to when two companies of almost same size come together to work as a single entity. In this, both the companies join forces to achieve greater efficiencies, capabilities, sales and profits. Group50, a leading 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. Merger and acquisition 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. If everything goes well between both the companies, the initial negotiation of all the deal terms is done. Due diligence In due diligence, a thorough review of all the operating processes is done of the target entity. Corporate risks are assessed and all 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 parties, the final agreement is drafted which defines and create task forces, future state, organizational structure, skills needed, staffing levels, operating budgets and communicational strategy. 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. Align and optimize In this step, strategic plans are re-aligned to the business objectives. All the critical business processes are optimized and the operating adjustments are done. Also, it includes a management review and merger & acquisition results audit. To support your merger and acquisition decision making process, Contact Group50, a renowned mergers & acquisitions consulting firm as they 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, Sunbeam, Champion Arrowhead and many others. They provide unique
methodologies and tools for successfully planning and executing a merger or acquisition.
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