How we can help you -
1. Identify potential businesses
2. Approach businesses on your behalf
3. Undertake the initial preliminary review
4. Complete the negotiations on your behalf
The entire process can be seamless and confidential. Of course if you wish to sell to a competitor we can also help with this process as well.
The following is an overview of Mergers and Acquisitions as described by
http://en.wikipedia.org/wiki/Mergers_and_acquisitions.
It is a general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another with no new company being formed.
Acquisition usually occurs when a similar or larger sized business wishes to acquire your type of business. Depending on the industry, what makes this option attractive to a purchasing company is the ability to merge the two businesses reducing the infrastructure necessary to run both businesses. This is referred to as "economy of scale".
Classification of Mergers:
Horizontal mergers take place where the two merging companies produce similar product in the same industry. In microeconomics and strategic management, the term horizontal integration describes a type of ownership and control. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets. To get this market coverage, several small subsidiary companies are created.
Each markets the product to a different market segment or to a different geographical area. This is sometimes referred to as the horizontal integration of marketing. The horizontal integration of production exists when a firm has plants in several locations producing similar products. Horizontal integration in marketing is much more common than horizontal integration in production. It is contrasted with vertical integration.
Vertical mergers occur when two firms, each working at different stages in the production of the same good, combine. In microeconomics and strategic management, the term vertical integration describes a style of ownership and control. Vertically integrated companies are united through a hierarchy and share a common owner. Usually each member of the hierarchy produces a different product or service, and the products combine to satisfy a common need. It is contrasted with horizontal integration. Vertical integration is one method of avoiding hold-up problems.
Conglomerate mergers take place when the two firms operate in different industries. A conglomerate is a large company that consists of divisions of often seemingly unrelated businesses. Conglomerates were popular in the 1960s due to a combination of low interest rates and a repeating bear/bull market, which allowed the conglomerates to buy companies in leveraged buyouts, sometimes at temporarily deflated values.
Reverse Takeover is a unique type of merger also called a reverse merger used as a way of going public without the expense and time required by an IPO. A reverse takeover (RTO), also known as a back door listing, or a reverse merger, is a financial transaction that results in a privately-held company becoming a publicly-held company without going the traditional route of filing a prospectus and undertaking an initial public offering (IPO).
Rather, it is accomplished by the shareholders of the private company selling all of their shares in the private company to the public company in exchange for shares of the public company. While the transaction is technically a takeover of the private company by the public company, it is called a reverse takeover because the public company involved is typically a "shell" (also known as a "blank check company", "capital pool company" or "cash shell company") and it typically issues such a large number of shares to acquire the private company that the former shareholders of the private company end up controlling the public company.
Source reference: http://en.wikipedia.org/wiki/Merger
