What is Mergers and Acquisition?
A merger is the combination of one or more corporations, or business entities, into a single business entity. This is so as to achieve greater efficiencies of scale and productivity, sales and marketing, and in administering the business. The existing companies’ stocks are surrendered, and the new company’s stocks are issued in its place. A merger can be classified as horizontal (two companies in direct competition), vertical (a company and its supplier or customer), a conglomeration, product-extension, and market-extension.
An acquisition is when a strong (or large) company buys a weak (or small) company(s) to create a more competitive, cost-efficient company. From a legal point of view, the smaller company ceases to exist, and the buyer absorbs the business. The large company’s stock continues to be traded while the small company’s stock ceases to exist.
Why mergers and acquisitions (M&A) happen in India?
When companies come together they can achieve cost efficiencies in the delivery of goods and services, sales and marketing, and the administration of the business. In a nutshell, they can take advantage of synergistic opportunities in the following four domains: economies of scale, staffing efficiencies, expanded market reach, and access to newer technology.
What are InCorp’s mergers and acquisition (M&A) services in India?
InCorp’s M&A services in India cover the entire spectrum of strategic options, including:
- Brown-field acquisitions
- Mergers and demergers
- Divestitures
- Exclusive sales
- Joint ventures and foreign collaborations
- Leveraged buyouts
- Group restructuring
- Spin-offs
To achieve this, our process is simple. We plan for the combined entity to achieve its desired synergies after the M&A; then we analyse and prepare a blueprint of how these synergies will be achieved; and finally we execute the said blueprint.
What are the advantages of using InCorp’s M&A services in India?
Through our pan-Asia reach and networks, we work on larger national and global transactions involving complex business M&As spanning multiple locations. Thus, if you choose to work with us when you are thinking of getting into M&A, you get benefit of the following:
- We help with transaction structuring, finance arrangement, as well as providing outsourcing options.
- As part of our valuation methods, we include strategic potential, required investment, intellectual asset valuation and future potential, while assessing all potential M&A options.
- During deal structuring, we do a complete analysis of the costs and benefits associated with all kind of deals in order to provide you with the most beneficial equity structure.
- It is important to note that there are a few things companies need to take care of, to get it ready to be merged or acquired. This includes cleaning up the balance sheets, getting all financial statements audited, discontinuing poorly-performing products, cutting down fringe benefits, and removing any conflict of interests. InCorp can help with all of that.
InCorp’s investment banking experts will guide you in every step of the way – as described above – to ensure a successful M&A.
