Mergers and Acquisitions
Another name for this activity is buying and selling companies. Since we have been in Wolverhampton we have done a number of these activities.
Not all mergers are sensible arrangements and we try not to interfere with a client’s wishes other than maybe timing. This, like many aspects of the work, has many variables and these are related.
Does the new structure combine or retain skills that enable the company to go forward? Does the product have a future market? Is the price sensible?
These questions and others can lead to a quick decision to cancel the possible deal but also give an insight in how to move forward.
Sometimes the market place is changing and sometimes there are reasons to invest elsewhere. This might be for tax advantages or the impending blight on the target company.
As can be seen there are many types of acquisition, this can be from the position of an individual wanting to start up on their own or a company wishing to expand. Similarly from the selling side it might be someone wishing to retire now or within a short period of time.
There might be illness or disagreement as to the way forward. Sometimes the buyers have knowledge of the target and the type of business, whereas sometimes they just see a good profitable company that is in a related business.
We are not able to give investment advice but pointing people in the right direction can save expense when buying as well as when selling.
The transaction will usually require funding and in years gone by accountants knew local area bank managers that they could put forward as lenders to different types of amalgamation.
Today banks are closing branches and decisions on lending are usually not at a local level and always subject to approval higher up the chain so a good business plan is an essential. We can help with that and financial forecasts of future trading that show, if it can be shown, that the deal makes good, sound business sense. We have worked with a number of local solicitors on these matters and it is essential that the legal contract is set up by one with experience as this protects both buyer and seller.
Not all mergers are sensible arrangements and we try not to interfere with a client’s wishes other than maybe timing. This, like many aspects of the work, has many variables and these are related.
Does the new structure combine or retain skills that enable the company to go forward? Does the product have a future market? Is the price sensible?
These questions and others can lead to a quick decision to cancel the possible deal but also give an insight in how to move forward.
Sometimes the market place is changing and sometimes there are reasons to invest elsewhere. This might be for tax advantages or the impending blight on the target company.
As can be seen there are many types of acquisition, this can be from the position of an individual wanting to start up on their own or a company wishing to expand. Similarly from the selling side it might be someone wishing to retire now or within a short period of time.
There might be illness or disagreement as to the way forward. Sometimes the buyers have knowledge of the target and the type of business, whereas sometimes they just see a good profitable company that is in a related business.
We are not able to give investment advice but pointing people in the right direction can save expense when buying as well as when selling.
The transaction will usually require funding and in years gone by accountants knew local area bank managers that they could put forward as lenders to different types of amalgamation.
Today banks are closing branches and decisions on lending are usually not at a local level and always subject to approval higher up the chain so a good business plan is an essential. We can help with that and financial forecasts of future trading that show, if it can be shown, that the deal makes good, sound business sense. We have worked with a number of local solicitors on these matters and it is essential that the legal contract is set up by one with experience as this protects both buyer and seller.