The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Merger and acquisition refer to the consolidation of companies and assets to achieve competitive advantages and sustainable growth. A merger takes place when two different companies come together to form a new organization. Whereas, acquisition is the act of taking over an existing company entirely.
As per Report, the global estimated mergers and acquisitions valuation for 2020 stood at $2.8 trillion. In 2019, the value of inbound and outbound M&A in the Indian energy and natural resource industry was $21 million and $112 million, respectively. Therefore, to identify the right course of action while undertaking an investment, it is crucial to consult the best merger and acquisition firms in India.
Types of Merger and Acquisition
Horizontal M&A – A merger between two companies trading on similar products and services.
Vertical M&A – Merging of two companies belonging to the same industry but offering different products and services.
Conglomerate – It is a merger between two firms from entirely different industries with completely distinct supply chains.
Concentric – Joining of two firms that share the same customer base but offer different services.
Stages of M&A
There are predominantly four stages of M&A:
Identifying targets and setting up deals.
Structuring deal plan, calculating valuation and negotiations.
Drafting of legal agreements and securing board approvals.
Lastly, initiation of the integration process and planning out the organizational and financial structure for long-term growth.
A successful M&A helps to improve market share, increases customer base and allows achieving sustainable growth in the long run. Therefore, it is crucial for every foreign company investing in India to collaborate with the best merger and acquisition firms, like Tecnova.
About the Author
Tecnova is one of the best merger and acquisition firms in India, with over 35 years of experience in the field. As of 2021, it has over 1400 clients spread across 35 countries worldwide. The company offers comprehensive M&A assistance with a specialized team that aims at reducing investment risks. It also successfully assists clients in securing a strong foothold in the Indian market.