One of the reasons why mergers and acquisitions take place in the market is the desire to strengthen the company’s position in the market by its management.
For example, a merger has a positive effect on the value of the resulting company, and also opens up new opportunities for it – it can compete for the title of a leader in its industry even more effectively than before.
However, there are more reasons for mergers and acquisitions – sometimes it may be a desire to reduce operating costs, and in other cases to enter new, previously inaccessible markets.
Both mergers and acquisitions do not happen overnight. These are operations that have specific effects on various levels, e.g. legal, economic, and tax.
The process is so complicated that it must be preceded by preparations. The goal of Transaction Advisory Firms in India is, among others to protect the interests of companies and ensure that the merger or acquisition process takes place without delays or unexpected problems.
How do companies offering transaction advisory help?
In the case of mergers or acquisitions of companies, the assistance of companies specializing in transaction consulting is invaluable.
Why? Because they comprehensively support you at the stage of preparation for such an operation. As a rule, they employ experts – lawyers, tax advisers, and statutory auditors who work together on the success of the planned operation. The company’s management can count on:
- Preparation of a merger plan – in this area, transaction advisory also includes an analysis of the legal and economic consequences of such a transaction,
- Conducting due diligence – the valuation of an economic entity, preceded by a thorough analysis, fully presents its potential,
- Preparation of the necessary documentation – we are talking about, for example, contracts based on which the company will be merged or acquired.
Comprehensive assistance from companies offering Transaction Advisory Services in Delhi allows you to reduce the risk that the merger or acquisition will turn out to be economically unjustified or simply unsuccessful.
At the same time, a well-prepared transaction allows you to reap the full benefits almost immediately.
What to consider when choosing a consulting company?
There are at least a few consulting companies on the market offering assistance in mergers and acquisitions. How to choose a partner who will organize the transaction from the formal side? Experience is key.
The more companies a given consulting firm has helped in the past, the better. Specialists who had the opportunity, among others economically analyze acquisitions knowing what to pay special attention to. A good solution may be to choose a company offering transaction advisory that specializes, for example, in a specific industry or cross-border mergers.
Whether the preparations for the merger of the companies go smoothly depends on the cooperation of the entire team of specialists.
The consulting company must employ both attorneys, tax advisers, and auditors. In this way, it is possible to eliminate the need to reach for the services of other external companies.
It also positively influences the communication between specialists and allows to shorten the time needed to prepare the transaction to the necessary minimum.