The Process and Challenges of the Merger and Acquisitions Advisory Company in India
Among the several strategies that businesses are adopting today for growth are the merger and acquisition activity. This is a global activity and India is no different. In fact, the country is one of the most preferred destinations with big organizations eyeing the country with keen interest. Liberalized FDI norms, tax reforms, and the encouraging initiatives by the government are going the increase the tempo and investments are bound to take place in the days ahead. However, the increasing M&A activity has also resulted in the evolving of several new challenges. Therefore, the demand for merger and acquisitions advisory company in India has come to the fore.
Why organizations are looking towards India:
The economic fundamentals in India is growing stronger driven by the robust and optimistic future that the future promises to be. The country is politically stable, rapidly growing as an economically emerging nation, and the government’s initiations towards economic reforms is instilling confidence amongst the global organizations to hire a merger & acquisition consulting firm in India.
How the M&A can take place:
As the terms suggest mergers and acquisition can take place by one organization purchasing the assets, common shares, or offering shares for assets. The merger and acquisitions advisory company in India will identify prospective and interested parties i.e. organizations that look to invest and buy a promising emerging company. It may be a startup or an established growing business and secondly, identify businesses that look to be adopted to gain more financial credibility and sustenance.
What does the merger and acquisitions advisory company in India considers:
The basic principle that lies behind the M&A activity is the enhanced synergy value. The basic aim is to improve revenues, lower capital investments and reduce operational costs.
The primary considerations that the advisory company takes into account is whether a company is genuinely interested in participating in the M&A deal. The parties must be willing to take the risks and invest completely to reap the benefits that will accrue from the merger. The advisory consultants will look at the best options eliminating doubtful cases and narrow down to the ones that will most likely yield the best outcomes. The parties must not hasten in completing the deal and should be able to adopt to the changes the merger will result in.
The merger and acquisitions advisory company in India will undertake several tasks that are required before, during, and after the M&A deal. These include
Reviewing and assessing the acquiring company as to the need for M&A, the valuation of the company, layout plans and strategies for the growth plan.
Search for the right takeover candidates. This is mainly to scan prospective and willing to be acquired companies.
The third step is to do a detailed analysis of the target company that is shortlisted. Draft a suitable strategy, arrange a meeting between the two parties. Detail out how the M&A would take place.
The post-merger is the announcement, signing of the deal, completing all formalities, and creating a new phase for the two companies.