Corporate Finance

Mergers

What is a Merger?

A merger is the voluntary fusion of two companies on broadly equal terms into one new legal entity. The firms that agree to merge are roughly equal in terms of size, customers, scale of operations, etc.

Should I Consider Merging with Another Business?

Mergers are usually carried out to increase the market share of a business, reduce costs and increase the profitability on the bottom line. After careful consideration, a merger could be a viable option for your next business venture. However, we recommend that you talk to a financial adviser with experience in this area.

Acquisitions

What is a Business Acquisition?

An acquisition is when a business decides to buy most or all shares in an existing business, giving them control of the company. This occurs quite regularly between small and medium sized businesses.

Why Would I Acquire Another Business?

Companies acquire other companies in order to gain market share, diversify their business and achieve lower operational costs. However, there are a few other reasons why organisations decide to acquire.

1. Eliminate/Reduce Competition: Simply buying a competitors business is the most direct method of reducing competition. If this strategy is carried out effectively, it can prove to be hugely beneficial.
2. Entering into a New Market: Entering into unknown territory can be intimidating in business. That’s why some businesses choose to buy their way in.

How Do I Finance an Acquisition?

Relax, Consultas Financial Services will look after the entire process. If you’re looking to finance an acquisition, talk to our team today.