M&A Advisory
Mergers and Acquisitions
We offer our clients the strategic insights, transactional support, and personalized service needed to achieve their M&A objectives.
We understand that every transaction is unique, and we take a tailored approach to each engagement, providing customized solutions that address our clients’ specific needs and objectives. Whether it’s identifying strategic buyers or acquisition targets, arranging financing, conducting comprehensive due diligence, or negotiating deal terms, we work closely with our clients to guide them through every step of the M&A process and maximize value creation.
Why M&A?
The main objective of M&A activity is to accelerate business growth. It allow a business to grow at a rate that would not be possible through organic growth. Organic growth refers to internal growth from a business’ operations, often measured by year-on-year sales. Inorganic growth is growth from buying other businesses.
Inorganic Growth
Inorganic growth can help to immediately grow a company’s market share, revenues and assets. Other common benefits include:
Strategic Realignment
Inorganic growth, achieved through mergers, acquisitions, or partnerships, allows companies to quickly realign their strategies to better fit market demands or internal goals.
Market Penetration
Mergers and acquisitions provide immediate access to new customer bases and geographical markets.
Gain Access To New Technology
Acquiring companies with advanced technologies or proprietary innovations can be a quicker and more effective way to enhance technological capabilities than developing these technologies in-house.
Economies Of Scale
Larger scale operations can negotiate better terms with suppliers, streamline operations, and spread fixed costs over a larger output. These efficiencies can improve profit margins and provide a competitive advantage in pricing and cost management.
Tax Consideration
In some cases, mergers and acquisitions can offer significant tax advantages. Companies might acquire firms with favorable tax positions, such as carryforward losses, that can be used to offset future taxable income.
Lower Cost Of Capital
This enhanced credibility can lead to more favorable borrowing terms, reduced interest rates, and increased access to capital markets, enabling further growth and investment opportunities.
FAQ
Oftentimes, the terms merger and acquisition are used interchangeably, but there are distinct differences between the two.
Mergers involve two companies joining together to form a new and more powerful entity.
Acquisitions involve one company buying and absorbing another.
- Preliminary discussions and non-disclosure agreements
- Assessment and evaluation of target
- Due diligence in a Data Room
- Signing the contract and closing the deal
- Post deal integration
An M&A process will generally take anywhere from 6 months or more, depending on the complexity of the deal. Some of the biggest M&A deals have taken years to complete.