Business mergers typically involves the mutual decision of two businesses to combine and become one. Generally, such transactions are designed to provide major strategic advantages to both parties, with the combined entity becoming more valuable than the sum value of each legacy business involved in the transaction.
Mergers can provide major advantages to each party involved. These can include:
- Access to new technologies and systems
- Access to synergistic products and/or services
- Broader geographical penetration
- Reducing competitive tension in consumer markets
Managing mergers can be tricky however. Often, the nature of business mergers is such that they may involve the combination of two businesses that may have been traditional competitors (often referred to as a horizontal merger), or the merger of two businesses that may have held a supplier-customer relationship in the past (often referred to as a vertical merger). Mergers such as these clearly present a range of challenges, most notably the management of confidentiality constraints.
Often too, business mergers will see the combination of two businesses that are not equal in size. Such mergers can present challenges for both parties to the merger. For smaller parties, it is vital to negotiate terms that will not unfairly discount the holdings of shareholders in the merged entity, and ensure management from the smaller entity can contribute to the success of the merged business. Larger parties to a merger transaction should ensure the merged entity will generate requisite synergies and strategic advantages such that the merger is a smart and worthwhile transaction for them over the long term.
Our Approach to Business Mergers
At Quinn M&A, we have the experience and acumen to guide clients in the consideration and execution of business mergers that drive long term shareholder benefit. Our comprehensive advisory experience allows us to guide merger clients in a range of areas including:
- The completion of confidential, discreet value assessments of potential merger targets, including competitors and businesses up or down your supply chain
- Assessment of merger synergies, including financial modelling, valuations and hypothetical decision analysis
- Management of cross-border and inter-jurisdictional issues
- Discreetly scoping interest from potential merger partners
- Advising on the design and structure of business mergers
- Negotiating terms of business merger transactions
- Clear and concise taxation advice for either party to a merger transaction or for the merged entity
- Due diligence advice and guidance
- All legal requirements
Quinn M&A’s comprehensive yet concise advice will ensure you negotiate an optimum outcome in any merger transaction, including domestic and cross-border mergers.
Let Us Help You
If you are considering your options with relation to potential business mergers we would love to hear from you. Call our office today on +612 9223 9166 or submit an Express Enquiry form to arrange a confidential consultation with our Director, Michael Quinn.
