Synergy is energy
“There is no magic formula to make acquisitions successful - only a handful
are likely to do so.”
M&A, divestitures and JVs can fuel growth. A clear strategy, sourcing the right deal, sound diligence and smooth integration are crucial.
Although M&A transactions are a viable avenue to quickly scale an organization, expand to new markets, and create synergies, the integration of these two separate entities attempts to assimilate a multitude of dynamic variables such as company culture, longstanding practices, and perhaps the most complex of all, people. These variables run a high risk for a marriage of the two entities to be anything but harmonious.
What are typical M&A Deal Structures?
An M&A deal structure is essentially the “terms and conditions” of a deal that outlines the rights and obligations of each party. Although M&A deals widely vary from one to the next, there are generally three different options for structuring an M&A deal:
1. Stock Purchase
The buyer purchases a substantial or the entire amount of the target company’s stock from its stockholders, leaving the company and its assets intact,but now under the new ownership of the acquirer.
2. Asset Acquisition
The buyer acquires a majority of the sellers’ assets and assumes liability for the assets chosen. These transactions are often paid for with cash or stock.
3. Merger
Two separate companies integrate to form a single, new entity. Unlike stock purchases or asset acquisitions, there is not necessarily a “buyer” or “seller.”
What can McVisor assist you?
Whether pursuing as a buy-side or sell-side, you will need to know what are the risks of the integration. We understand that every type of deal is different, requiring bespoke integration approaches, priorities and operating models. We can help you achieve your strategic objectives through mergers and acquisitions (M&A), divestitures and joint ventures with our services, you will have a crystal clear sight of financial and tax risks, business valuation and how to integrate books into your company.
