Mergers and acquisitions (M&A) is a strategy that helps organisations consolidate assets with the aim to stimulate growth and gain competitive advantage. It also minimises competition, increases market share and impacts the supply chain. Finding the right partners is crucial.

However, there are many steps and processes to be completed before a deal is successfully executed. In India, the laws are different. There are many complications and time-consuming procedures to be implemented. This is why it is important to utilise the services of a merger & acquisition consulting firm in India.

What is M&A?

Merger is a process where the target company ceases to have a separate identity. It is absorbed by the principal company. in contrast, the acquisition is a process where the target company is acquired but it retains its legal and brand identity.

The strategy:

The merger & acquisition consulting firm in India offers solutions to the several issues that hinder a smooth deal. Their team of professionals do an in-depth study of the participating companies financial standing and ascertain their objectives. The second stage is to design a cost-effective strategy that puts the two parties on track for long-term profitable growth.
High competition in every industry and the evolving consumer requests have made companies reconsider their strategies. Now they include acquisitions as an integral part of their policies. Large organizations are always on the lookout for target companies, big or small.

The process:

The consultants have their network across the global market and help you with identifying the target companies. They arrange a meeting between the decision makers to decide the acquisition/ merger path, create a memorandum of understanding, finalise the financing aspects.

Diligence:

Any project to be successful requires careful handling. There are several aspects that must be taken into consideration when planning an M&A deal. This will high expertise and resources. Planning to go on your own can be risky and put pressure on your team diverting them from core business.
The mergers and acquisition advisory company in India offers comprehensive services in tune with the applicable regulatory acts including Income Tax, SEBI, FEMA, and similar. The professionals analyse the cash flows and other factors that specifically relate to your industry. They will draft out an acquisition plan and valuation.

Negotiation:

The merger & acquisition consulting firm in India will join the two parties and assist in the completion of the agreement. If there are some changes in the valuation, the same is incorporated and then start the talks of the payment structure. They will then draft the MOU, M&A terms, Purchase agreement, business transfer agreement, etc.

Once the process is executed, the merger & acquisition consulting firm in India will do a post-merger/ acquisition integration. This is as important and necessary as a strategy that you plan before starting the M&A execution. The consultants can be good advisors for the company employees that are emotionally disturbed by the M&A. They will assist in the firm registration, assist with the bank formalities, manage the compliance of administrative and fiscal laws.