A Merger is the combination of one or more corporations, LLCs, or other business entities into a single business entity; the joining of two or more companies to achieve greater efficiencies of scale and productivity. An Acquisition is the purchase of one corporation by another, through either the purchase of its shares, or the purchase of its assets.

The targets behind M&A’s;

  • Creating Synergy
    • Operational
    • Financial
  • Realizing Growth Targets
    • Internal Sources
    • By acquiring
  • Obtaining Competitive Edge
  • Getting access to new market and clientele
  • Acquiring new production methods and technologies

The companies try to achieve their growth targets which are not attainable through organic growth, resort to inorganic methods, namely M&A’s. The other reason for M&A’s can be another way to overcome limitations for growth. Mergers can be in three different forms; horizontal, vertical and functional. While horizontal mergers can give way to attaining scales of economies and increased market share, vertical mergers can result in dominance over production chain ve reduction in production costs. Functional Merger, establishing combined functional capability, achieve risk diversion, create new and ready business lines.

The processes during M&A’s;

  • Planing of Merging Strategy,
  • Selection of Target Criteria,
  • Data Base Research for prospective targets,
  • Evaluation of Targets,
  • Action for  Planing  and Merging,
  • Detailed Financial Analysis of the Target,
  • Negotiation Strategies and Tactics,
  • Analysis of Organizational Differentials,
  • Planning and Implementation of Integration