Company mergers and acquisitions (M&A) are corporate transactions that companies undertake to realize their growth strategies, increase market share, create synergies, and gain competitive advantage. These processes provide companies with the opportunity for rapid expansion beyond organic growth.
M&A transactions play a critical role in helping companies achieve their strategic goals in today's globalizing economy. When properly planned and managed, these transactions can create significant value for companies, but they require professional consultancy as they involve complex legal and financial processes.
It is the process of combining two or more companies under a single legal entity. As a result of the merger, one of the merging companies continues to exist while the others cease to exist.
It is the process of one company purchasing another company or taking control of it. The acquiring company purchases the majority or all of the target company's shares.
The first stage of the M&A process is determining the company's strategic goals and identifying potential target companies that fit these goals. At this stage, the company's growth strategy, market position and financial capacity are evaluated.
Detailed analysis of potential target companies is conducted. This analysis covers the company's financial situation, market position, operational performance and strategic fit.
Initial contact is made with the target company and preliminary negotiations begin. At this stage, the general framework of the transaction is determined and a Letter of Intent is signed.
Detailed examination of the target company is conducted. This process includes financial, legal, operational, commercial and technical due diligence stages.
Based on the due diligence results, the target company is valued and the purchase price is determined.
The details of the purchase agreement are negotiated. At this stage, price, payment terms, warranties and indemnities are determined.
Necessary legal approvals are obtained and the transaction is completed. At this stage, regulatory approvals such as competition authority approval and capital markets board permission are obtained.
After the transaction is completed, the integration of the two companies is realized. This process covers operational, financial and cultural integration.
Due diligence is one of the most critical stages of M&A transactions. In this process, all aspects of the target company are examined in detail and potential risks are identified.
M&A transactions are processes that involve complex legal procedures and are subject to numerous legal regulations. Therefore, getting professional legal consultancy is critical.
The success of M&A transactions depends on proper management of the process. There are critical points to consider in this process.