Arrangement of Merger & Acquisition

Mergers and Acquisitions (M&A) are defined as consolidation of companies. Differentiating the two terms, Mergers the combination of two companies to form one, while Acquisitions is one company taken over by the other. M&A is one of the major aspects of corporate finance world. The reasoning behind M&A generally given is that two separate companies together create more value compared to being on an individual stand. With the objective of wealth maximization, companies keep evaluating different opportunities through the route of merger or acquisition.


The terms "Mergers" and "Acquisitions" are often used interchangeably, although in actuality, they hold slightly different meanings. When one company takes over another entity, and establishes itself as the new owner, the purchase is called an acquisition. From a legal point of view, the target company ceases to exist, the buyer absorbs the business, and the buyer's stock continues to be traded, while the target company’s stock ceases to trade.


The reason for Mergers and Acquisitions take place are as follows:

 -   Financial synergy for lower cost of capital

 -   Improving company’s performance and accelerate growth

 -   Economies of scale

 -   Diversification for higher growth products or markets

 -   To increase market share and positioning giving broader market access

 -   Strategic realignment and technological change

 -   Tax considerations

 -   Undervalued target

 -   Diversification of risk

 

Bringing organizations together through mergers and acquisitions, or carving them out through separations and divestitures, are among the most complex business activities an organization will ever undertake. In this regard, SFCS provides best-in-class Merger & Acquisition (M&A) advisory solutions for its clients in buying, selling or consolidating companies across all industries and across international border throughout the entire M&A deal life cycle. We provide services to selecting the right partner thorough due diligence to closing the deal. We also align our services to address your transactions, integration and separation needs, all with the goal of generating value for our clients. Our services includes:

For Buyer Side:

 -   Finding and evaluating potential target companies or sellers

 -   Structuring the transaction and valuation of the target

 -   Assisting in legal, technical and all other due diligence

 -   Negotiation on buyers’ behalf to achieve the best price

 -   Negotiation with regulators for necessary approvals

 -   Assessment of material agreements

 -   Drive the process smoothly to reach closure of the transaction

For Seller Side:

 -   Structuring the transaction and valuation of the Company

 -   Assisting in legal, technical and all other due diligence

 -   Negotiation on Seller’s behalf to achieve the maximum price

 -   Negotiation with regulators for necessary approvals

 -   Assessment of material agreements

 -   Driving the process smoothly to reach closure of the transaction