Mergers and acquisitions have already become common signs of business. Global companies and small local enterprises make such deals. However, according to experts, only about 20% achieve their goals. Mergers and acquisitions advisory assistance can simplify merging companies and raise the business to a new level.
What Is the Purpose of the Merger?
A merger or acquisition is one the forms of business reorganization. During the merger, two enterprises form a new company. The new legal entity gets specific rights and obligations that the company received from each participant in this procedure. Sometimes, such a union acts as an alternative to liquidation.
But if the merger is appropriately conducted, it is an excellent tool for business development. As a result of M&A processes, the shares of the company’s founders are successfully distributed in the new company.
Why companies may need merger procedure:
- Supplementing already existing assets of merging companies.
- Financial savings due to cost reduction.
- Reduction of competition in the market.
- A bankruptcy alternative, especially during a crisis.
What Is the Function of M&A Advisory in the Merger Process
The merger raises many questions. It is vital for merging companies to understand who and what to be responsible for and how to benefit from the reorganization process. If you are interested in help conducting a transaction or have any questions at any stage, contact the specialists. As part of supporting M&A transactions, advisory services:
- Develop a strategy for implementation.
- Find and evaluate targets for a merger or acquisition, and select an object for a transaction.
- Carry out Due Diligence – a comprehensive study of the company acting as the object of the M&A transaction.
- Deal with the preparation of documents for the deal.
- Monitor and evaluate the results of the transaction.
In What Cases Is It Necessary to Seek an Advisor?
Professional M&A advisory experts like Waveup have many years of successful experience in protecting clients’ corporate rights and representing legal entities’ interests on any corporate issues arising in their activities before state bodies, institutions, and other organizations.
The risks of M&A transactions include losing control over the company, the impossibility of achieving a synergistic effect in case of unsuccessful integration with the acquired object, underestimation of competitors, and an increase in the debt burden.
In this case, it is necessary to turn to specialists who will provide quality advice required for the implementation of mergers and acquisitions by global corporations, commercial and investment banks, as well as domestic small and medium-sized enterprises regarding:
- making a strategic decision on mergers and acquisitions;
- selection of the target company and analysis of its market characteristics;
- formation of a team for the preparation of an M&A agreement;
- purchase and sale of corporate shares;
- complex investments in the corporation;
- transfers of property complexes;
- drawing up an agreement on the intention of the buyer company to conclude an M&A contract;
- organizing and carrying out the Due Diligence procedure;
- proposals for purchasing a controlling stake and the merger and division of corporations.
Signs of a Good Advisor
Professional M&A advisory services have the opportunity to offer their clients full-fledged legal assistance and adequate support in various complex transactions, including transactions of a transnational nature.
- They are business-oriented: They offer complex solutions to problems and expand the services provided following the client’s requirements.
- They are reliable: The experience that professional advisors have accumulated throughout their work allows offering their clients high-quality services.
- They are profile: As a rule, M&A advisory team is experts in various branches gathered in one company and provide a comprehensive approach to solving client problems.
- They have an individual approach: Building long-term relationships based on the principles of a personal approach to each client.
Business is always a risk. Sometimes the circumstances are such that you have to think about how to save the company. M&A methods will not only help to leave the case afloat but also give development opportunities. The help of a merger transaction consultant is an already developed algorithm to create the most transparent and comfortable conditions for both parties.
