mayur Chokshi & Co.

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Mergers & Acquisitions


The term Mergers & Acquisitions refers to combining or merging of two or more business enterprises to form one single company. It is a part of a company's strategy for expanding and strengthening its operations. The process undertaken is usually beneficial to both the companies that are merging or if a bigger company is acquiring a smaller company.

Merger & Acquisition is a corporate finance strategy of a company and is a comprehensive process requiring the need of professional lawyers and chartered accountants to understand the financial and legal implications.

Types of Mergers

  • Horizontal mergers: A situation when two or more merging companies manufacture similar product in the same industry.
  • Vertical mergers: A situation when two or more merging companies work at different stages of manufacture of a same product.
  • Conglomerate mergers: A situation when two or more merging companies operate in different industries.
Accounting professionals help a company during M&A and have the necessary expertise to analyze whether the company is entering the right deal, whether the company can afford the acquisition, avenues for future growth etc.

Accounting firms provide comprehensive services in every stage of the process right from identification of potential acquisition to negotiations, financial implications, cost of merger and forecasting the future potential etc. These firms also provide the following services:
  • Review of a company's goals and objectives
  • Due diligence service
  • Preparation of financial forecasts
  • Advice on potential threats and rewards involved in a merger/ acquisition
  • Complete assistance in purchase negotiations
  • Advice on financing and tax planning


 

 
     
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