M&A (Merger & Acquisition)

This term refers to all those extraordinary finance transactions that lead to the merger of two or more companies. Merger is the actual fusion and with this operation, the merging companies cease their legal existence to merge their assets into anew company. Acquisition is a form of merger by incorporation in which a company (the acquiring company) maintains its legal identity by annexing other companies that cease to exist; in this case, therefore, a new company is not born.

M&A operations are among the ways of growth for external companies, allowing them to reach the critical mass needed to operate on multiple markets – sectoral or geographical- and achieve economies of scale and scope.

The activity of M&A consists of a consulting service for companies and entrepreneurs, to design and pursue external growth processes of companies and to define the structure of corporate groups during business development processes or in relation to changes to the ownership structure.

In this process, our consulting service is achieved through:

  • search for industrial or financial partners for the entrepreneur;
  • coordination of the operation and identification of risks and management methods;
  • the definition of an appropriate acquisition, merger or sale strategy;
  • the mandate signing to purchase or sell the company;
  • the identification of the price/exchange targets and the counter parties;
  • assistance during negotiations and in the final stages of the operation

STRATEGIC REASONS THAT LEAD TO M&A OPERATIONS

Leadership strategy

Through an appropriate M&A operation, the company intends to achieve and consolidate its position on the market.

Growth strategy

Through this operation, the company tries to access new markets to implement a logic of sector or geographical diversification of its own business.

Rationalization strategy

In this case, the objective of the merger or acquisition is to increase the company’s efficiency levels by implementing concentration operations on the core business or integration upstream and downstream of production processes.

ADVANTEGES

  • optimize the value of the company and maximize profits,
  • define the best purchasing conditions for the target company; 
  • reduce the risk of inappropriate transactions, through detailed profitability and feasibility estimates of the operation.