Mergers & Acquisitions

Contents

Overview

When your business is in financial distress, it doesn't make it automatically unattractive to other businesses. In fact a lot of large organisations seek to expand their portfolios with companies that are struggling.


It's an option to carefully consider as it's not a guarantee of success. There are risks involved. 


It's important to seek professional advice and guidance to assess the risks and benefits of an M & A and to ensure that the transaction is structured in a way that maximises value for all parties involved.

What are mergers & acquisitions?

Mergers and acquisitions (M & A) refer to the process of combining or buying companies to achieve strategic objectives such as market expansion, diversification, or increased efficiencies.


The UK M & A market is characterised by a range of deal types, including acquisitions of distressed companies, strategic mergers between companies with complementary businesses, and private equity-backed buyouts.


Merger refers to two companies joining, usually through the exchange of shares, to become one. 


Acquisition occurs when one company, the buyer, purchases the assets or shares of another company, the seller, paying in cash, stock or other assets of value to the seller.

Mergers & acquisitions process

Here is a simple step-by-step guide for how a merger or acquisition (M&A) can be conducted in the UK:








It's important to note that the M & A process can be complex and may require the assistance of legal, financial, and other professional advisors to ensure that the transaction is conducted in a way that maximises value for all parties involved.

Types of mergers & acquisitions

There are several types of mergers and acquisitions (M&A), but the most common ones include:

It's important to note that the specific type of M&A that a company pursues will depend on its strategic goals, industry dynamics, and the availability of potential targets. Additionally, M&A transactions can take many forms and involve a wide range of financial and legal structures, so it's important to seek professional advice and guidance when considering an M&A.

Advantages of mergers & acquisitions

For a business in financial distress, seeking to be part of a merger or acquisition (M&A) can have several advantages, including:





Disadvantages of mergers & acquisitions

There are several disadvantages that a business in financial distress may face when seeking to be part of a merger or acquisition (M & A), including:

It's important to carefully weigh the pros and cons of an M & A and to seek professional advice and guidance to assess the risks and benefits of the transaction. It's also important to ensure that the transaction is structured in a way that maximises value for all parties involved.