Accelerated Mergers and Acquisitions

Businesses that are experiencing pressure on profitability may wish to consider an accelerated merger or acquisition. We review how the process could benefit your business.

 

A merger and acquisition is an overall term that is used to describe the consolidation of companies. A merger, as the name suggests, involves combining two companies to form a new company, while an acquisition involves the purchase of one company by another. When an acquisition is undertaken no new company is formed, the company bought simply becomes part of the acquiring company.

 

There are many benefits for businesses that may be experiencing profitability issues to look to undertake an accelerated merger or acquisition of their business. If done properly it means that all stakeholders can maximise value by selling a share of, or all of their business assets in a tight timeframe. The key for success here is early intervention.

 

In order for an accelerated merger and acquisition to be successful it requires specialist input if  you are looking for an accelerated merger or acquisition for your business it is important that you recruit the services of a dedicated Merger and Acquisition (M&A) team with extensive experience in marketing and disposing of distressed businesses at an early stage.

 

When should you consider an accelerated merger and acquisition?

 

If your business is experiencing cash flow or profitability pressures, then an accelerated M&A may be a good option. In addition, if demand for your business product or service suddenly falls off, or if you suffer the loss of a major customer that significantly affects how your business operates, then an M&A could be a good choice too. Other areas to consider when it comes to deciding whether an M&A is the right choice for your business involves changes to working capital and a failure to meet required growth targets that lead to an overleveraged balance sheet.

 

How can experts in accelerated mergers and acquisitions help?

 

Corporate restructuring teams that are experienced in accelerated mergers and acquisitions can help the process run smoothly for all stakeholders, finding a viable solution in often extremely tight timeframes to maximise returns.

 

This includes working with business leaders and managing all stakeholders to provide a platform for sale. This in turn can free up business leaders to continue to run the business, rather than have their valuable time diverted to looking for a solution to their struggling business.

 

If your business is failing, you may want to seek out professional insolvency advice.

 

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.

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