M&A stands for Mergers and Acquisitions and in simple words refers to as consolidation of companies. Elaborating on the two terms,
- Merging of companies is defined as the consolidation of two companies to form one.
- Acquiring of firms is said to be as one company being acquired by another company.
At Veristrat, we help our clients in relation to buying & selling of business. The team supports companies that plan to merge with other companies or acquire companies, be it a minority stake or partial stake.
Our team’s primary focus of M&A deals is attainment of synergies to maximize more opportunities along with the scope of Wealth Maximization.
How we support you?
Our highly trained professionals assist you in the following types of mergers:
- Horizontal merger
- Vertical merger
- Conglomerate merger
- Concentric merger
- Forward merger
- Reverse merger
- Subsidiary merger
Along with mergers, our professional team provides complete assistance and guidance in all aspects of acquisitions like:
- Hostile acquisition
- Friendly acquisition
M&A deals offer you the following benefits. Our team of experts assists the clients globally to intensify these benefits in the following ways:
- To get financial synergy for lower cost of capital.
- To improve company’s performance and accelerate growth.
- Economies of Scale
- Diversification for higher growth in products or markets.
- To increase market share and positioning which offers broader market access.
- Strategic realignment and technological change
- Tax benefit
- Undervalued target
- Diversification of risk
The stages/phases involved in Merger and Acquisition transaction are:
- Phase 1: Pre-acquisition review: This would include self-assessment of the acquiring company with regards to the requirement for M&A, ascertain the valuation (undervalued is the key) and making out the growth plan through the target.
- Phase 2: Search and screen targets: This would involve searching for the possible target companies. This process is mainly to scan for a good strategic fit for the acquiring company.
- Phase 3: Investigation and Valuation of the target: Once the appropriate firm is chosen through primary screening, detailed analysis of the target company has to be completed. This is also referred to as Due Diligence.
- Phase 4: Acquire the target through negotiations: Once the target company is shortlisted, the next step is to start negotiation to come to consensus for a negotiated merger or a bear hug. This brings both the companies to agree mutually to the deal for the long term working of the M&A.
- Phase 5: Post Merger Integration: If all the above steps fall in place, there is a formal announcement of the agreement of merger by both the participating companies.
Our experienced personnel along with the use of latest techniques provides thorough solutions pertaining to M&A deals. We handle the M&A services on behalf of our clients by providing a hassle free experience. Keeping in view the complexities involved in an M&A deal, our team focuses on each minute detail so as to provide high end quality driven results.