Mergers & Acquisitions
Helping your small business grow!
Mergers and Acquisitions can be quite
confusing causing you to lose thousands of dollars…
Overpaying for a merger or acquisition will literally add a decreased value to your set of financials for 15 years!
Part of taking your company to the next level is purchasing a competitor, a company for sale, or merging with another company. We can’t tell you how difficult this is, and can be the best thing or worst thing to happen to your small business.
Your most important step is hiring a small business growth service to help guide and direct your analytics. We assess and audit your potential merger or acquisition and provide you with a professional opinion as to whether or not you should proceed.
Mergers and acquisitions preview:
Mergers and acquisition services
Mergers and acquisitions is a term generally used to describe the combination or transfer of ownership of companies, business organizations or their operating units. In business world, M&A has become an acceptable trend as it allows businesses to grow, shrink, change the nature of their business and also improve their competitive position. Thus, although the goal of every M&A move or decision is unique to every business, it is, however, always underlain by the principle of creating more value (after combining) than the merged companies are worth individually.
What are company mergers and how do they work?
A merger, simply put, is a consolidation of two or more companies to form one. In business mergers, the boards of directors of the enterprises intending to merge approve the combination and seek the approval of shareholders’. Once the merger is done, the acquired enterprise ceases to exist, becoming part of the acquiring company.
The role of an acquisition company:
Merging business can be a very intimidating process and this is why there are acquisition firms that could facilitate the process by taking on the responsibility for a fee. An acquisition company guides its clients (companies) through these transformative and multifaceted corporate decisions. Various types of an acquisition firm include investment banks, law firms, audit and accounting firms, as well as consulting and advisory firms.
What is an acquisition?
Acquisition refers to the purchase of a company by another with no formation of a new one. In acquisitions, a business or company purchases and takes over another company or other business entity. Such purchase might be of 100%, or almost 100%, of the assets or ownership equity of the acquired enterprise.
Types of mergers:
Examples of Mergers include a conglomerate, a horizontal merger, a market extension merger, product extension merger and vertical merger. A conglomerate means a merger between firms that are involved in totally unrelated business activities such as a leading manufacturer of wears merging with a soft drink firm. A horizontal merger is merger occurs between companies in the same industry; for instance, two beverage companies coming together to form one. A market extension merger, on the other hand, is one between two companies dealing in the same products but in separate markets while a product extension merger happens between two business enterprises that deal in products that are related to each other and operate in the same market. Lastly, a vertical merger takes place between two business organizations producing different goods or services for one particular finished product.
Why choose EC3 to help?
Choosing Ec3 to help with your merger and acquisition needs would be the best choice for you. We know just how to handle everything for you. We will help you improve your business, and get you beating you competitors by a mile. With our help you are guaranteed to succeed in the business world.
