Mergers and Acquisitions
Mergers and acquisitions are a widespread practice worldwide. The benefits and synergies that can be obtained from mergers and acquisitions come from efficient management, economies of scale, an improved and more profitable use of assets, the cultivation of marketing power and the use of complementary resources.
For SFA it is crucial to understand the dynamics of mergers and acquisitions. For example:
- When is the right moment for the sale of a company?
- Is the company ready to be sold?
- How much is it worth and how should that price be managed?
- How to prepare the company to reach its highest possible value?
- How can potential buyers be discreetly identified?
- How is the confidentiality of the process safeguarded?
- How can one confidentially research companies for sale?
- Who can be fully responsible for a sale process?
- Is it advisable to finance the purchase of a company? Under which structure?
The main goal of a company is to grow profitably, thus increasing the value of its stockholders. Mergers and acquisitions are an indispensable strategic tool used to grow the product portfolio, enter new markets, acquire new technologies and build an organization with greater power and resources in order to compete in a globalized world. These processes are often also the solution to succession conflicts within family businesses.
Finding the ideal partner and negotiating a transition in attractive terms are difficult tasks. A main factor for the success of a merger or an acquisition is to know how to communicate the value and probability of success of a merged company. It is necessary to quantify the potential added value that will be obtained and its strategic advantage. In this way mergers and acquisitions become a tool that allows companies to realize their full potential.
