We can support you in M&A processes with our local teams.
Our teams can help you find the local business that fits your needs and has real synergies to your operation.
They can also help you to devise a robust, strategic plan, taking the local culture into consideration to avoid risks due to lack of cultural adherence.
We can mentor your executive team to help unfold and implement the strategy or even outsource a temporary executive team to do so.
Furthermore, we can help you to hire the right insurance program to mitigate the risks existent during an M&A process.
We have specialists you can consult for a number of different transactions in an M&A process, such as mergers, acquisitions, consolidations, tender offers, purchases of assets, and management acquisitions.
Varieties of Mergers
We are able to guide you through all types of mergers distinguished by the relationship between the two companies that are merging, such as:
- Horizontal Merger: Two companies that are in direct competition and share the same product lines and markets.
- Vertical merger: Client and company, or a supplier and company.
- Congeneric mergers: Two businesses that serve the same consumer base in different ways, such as a TV manufacturer and a cable company.
- Market-extension merger - Two companies that sell the same products in different markets.
- Product-extension merger - Two companies selling different but related products in the same market.
- Conglomeration: Two companies that have no common business areas. There are two types of mergers that are distinguished by how the merger is financed. Each has certain implications for the companies involved and for investors:
Purchase Mergers - As the name suggests, this kind of merger occurs when one company purchases another. The purchase is made with cash or through the issue of some kind of debt instrument; the sale is taxable. Acquiring companies often prefer this type of merger because it can provide them with a tax benefit. Acquired assets can be written-up to the actual purchase price, and the difference between the book value and the purchase price of the assets can depreciate annually, reducing taxes payable by the acquiring company.
Consolidation Mergers - With this merger, a brand new company is formed and both companies are bought and combined under the new entity. The tax terms are the same as those of a purchase merger.