Mergers and Acquisitions
Merger and Acquisition (M&A) is a broad financial transaction term concerning the assets of the company that includes mergers, acquisitions, consolidations, tender offers, purchase of assets and management acquisitions. These transactions aim at consolidating the assets of the company. Acquisition, in some cases, is of companies operating in the similar business while some acquisitions involve companies from unrelated terrain.
The rationale behind a Merger and Acquisition
It is a strategic decision which entails an analysis of various business factors by the firms involved in Mergers and Acquisition. Two firms merging into one, results in, a larger valued entity with a larger consumer base, and this is the cornerstone principle on which Merger and Acquisitions are based. Some Mergers and Acquisition lead to great success for the merged entity; in contrast, some result in spectacular failure. A lot of it depends on due diligence done before going ahead with the Merger, as in-depth due diligence narrows the risks surrounding the intricacies of Merger and Acquisition.
Benefits of the Merger and Acquisition
The resulting merged entity has a larger scale of operation. It can buy more raw materials or intermediate goods, thereby reducing their production cost.
The merged entity has a higher market share assuming both the firms operate in the same industry.
Both the firms have access to wider distribution resource than compared to the pre-merger scenario. The merged firms can use each other’s distribution network.
The financial capacity of the merged firm increases significantly, juxtaposing with the before merger scenario where the firms existed as a separate entity.
We plan each stage, and since 5-6 month is very much an acceptable timeline for a merger and Acquisition, our professionals help you navigate through the elaborateness of the process. Closing of the M&A transaction entails the integration of finance, legal, tax, HR and other several elements. The team at Vidma prepares a strategy that incorporates all the aspects and aligns with your organizational goals. We have specialists who are erudite in M&A and have been a part of various complex M&A transactions, thereby ensuring that your transaction is anchored on firm business principles. Besides, we deploy A.I based software analyzing vast amount of data that comes along with M&A transaction, which enables us to see the holistic picture associated with an M&A transaction.
Unique attributes of our services
- Due diligence
- Bespoke services
- Finding synergy between different aspects of the merger and acquisition transaction
- Mapping of transactional risks associated with the merger and acquisition transactions
- Post-acquisition optimization
We provide after merger and acquisition services to the firms that help them in complying with the laws, which wouldn’t have applied to the firms individually, i.e., before the merger and acquisition transaction.