The factors involved in Mergers and Acquisitions make it an extremely complex proposition for companies wishing to unite. This calls for the expert m&a advisory firm to help companies through the tedious process of getting all the tough negotiations, financials and the merging and acquisition procedures done. The experts of the m&a advisory firm must ensure that both the parties should equally benefit from the process.
However, there is a fine line in defining Merger and an Acquisition. In an acquisition, one of the companies ends up taking over the other firm. The firm is then renamed as the first one and the business operations simply expand.
On the other hand, mergers are done with two equally well-performing assets who wish to join hands and collaborate by entering the two companies into a single entity. Now, this single entity is further jointly owned by the previous existing owners or proprietors. It should be noted that during the mergers of companies, the old stocks are surrendered, and the new stocks are being released for a new entity.
In either of the cases, the process is extremely sensitive and delicate and needs meticulous planning. This can be only done by some well-informed m&a advisory firm. The process involves various steps of negotiations. Some are mentioned below:
- Initial Evaluation
This is the first step of planning. The company is evaluated on the various factors such as the credibility of the profit-making status, the present condition of the company so on and so forth.
- Proposal Stage
After the initial investigation on assessing the company, the performance of a company is analyzed. All the financials and balance sheets are being scrutinized to understand the present business trajectory.
- Preparing for withdrawal
Once a proposal is given to a company to wishes to exit, the procedures for withdrawing then begins. This is a tricky process as it requires a right time frame and the exit should be perfectly timed. This also involves serious tax planning and gauging options for reinvestment.
- Promotional activity
Once the exit plan is permanent, the target company now goes into the full drive to achieve maximum saleable profits through the acquired company.
- Officiating the process
In case of an acquisition, the purchase agreement is been confirmed, in case of a merger, the final agreement is validated by signing the dotted lines.
IN case you wish to use the service of a trusted m&a advisory firm, you could rely on JMFL. Their trusted experts have been successfully helping many business entities acquire the objectives of merging and acquiring. Their experts are well versed in dealing with sensitive and high-pressured situations when the process complexity get tough. Do visit their site and see the various business offerings they have in store.