Here are 5 steps for company leaders to follow when expansion forces come knocking.
Mergers and acquisitions is a broader term that refers to the transaction with which two or more businesses can be combined. Mergers and acquisitions are considered as strategic management domain with which companies can make multiple changes. M&A is a continuous process with which enterprises can grow or reduce size. Once mergers and acquisitions are done, the nature and the position of the business can be changed. The ultimate goal of this practice is to combine two or more businesses in a way that there is synergy established.
M&A is done in order to gain short and long term results. These results can increase sales, distribution, network, efficiency, market share and capability of any enterprise. Mergers and acquisitions are done once more than two companies mutually agree to sign an agreement for new ventures. M&A can take place in a series of steps. There are five phases that are mostly used in mergers and acquisitions. These phases are:
1. Acquisition review
2. Find the target
3. Investigating and evaluation of target
4. Obtain the target
6. Post-merger integration
When two or more companies agree on having M&A, it means the assets will be purchased together. Both companies will now have a common share. Companies also have to exchange shares in order to share their assets. Companies’ shares are also exchanged as per the agreement of mergers and acquisitions. Once M&A is done, companies can work as a single unit with more diversified operational abilities.
I need consultant that can fill resource gap in end to end M&A execution from Finance function standpoint. This includes financial valuations, financial due diligence, and integration of Finance function of an acquisition.