Many companies choose to accelerate their growth through mergers or acquisitions that can offer an attractive opportunity to expand their business, capture synergies, reduce costs, increase market share or gain access to new markets, products and technologies.
Successful mergers and acquisitions are the result of a corporate strategy correctly defined and well-executed transactions.
Pangea assists its clients from the development of the corporate strategy through to the execution of the transaction.
Merger
The object of a merger of two companies is to capture synergies from the unfication of both businesses.
This type of transaction requires a detailed and careful study of the benefits of the merger, the establishment of the relative value of the companies, as well as the scrupulous planning and structuring of the shareholders’ agreement that will govern relations between the new partners. In this way, a merger is regarded as the most complex form of partnering transactions.
Acquisition
In order to identify potential bidders, extensive research must be undertaken based on strategic, operational and financial criteria of our clients. As soon as the business of the target company and its competitive position are identified, future prospects have to be analyzed.
Whenever possible, the evaluation of assets must determine the target value for their current owners, as well as for our clients. The evaluation for our clients will always be based on the strategy proposed for the management of the business and on synergies that can be captured.
Usually, an acquisition is much more than a simple combination of two sets of financial statements, operating cost reductions, profits forecast and cash flows on a pro-forma basis.
Other important points to be considered are:
Pangea is present throughout the entire acquisition management process, including: