In order to achieve the synergies of operations, often business house come together which leads to achievement of business vision, mission and goals. Merger and acquisition consists of combination of companies or assets through various types of financial transactions, acquisition of a smaller firm by giants, tender offers, horizontal mergers, vertical mergers, congeneric mergers, market or product extension merger, conglomeration.
Merger and acquisition deal will have different ideas about the worth of a target company. Seller Company will tend to value the company at as high of a price possible while the buyer will try to get the lowest price that they can. However there are legitimate ways to value the companies which includes Price earnings ratio, Enterprise value to sales ratio, replacement costs, and discounted cash flows.
- Profit estimation report
- Acquisition due diligence
- Preparation and analysis of SPAs
- Feasibility studies