Attorneys with you, every step of the way
Count on our vetted network of attorneys for guidance — no hourly charges, no office visits.
Providing access to our independent
network of attorneys over 1500 times.
Helping companies to close down operations in the smooth way
Mergers and Acquisitions (M&A) is an umbrella term that refers to the combination of two businesses.
M&A reward vs risk
Accelerate time to market with new products and channels
Remove competition (buying a competitor is called → horizontal integration)
Achieve supply chain efficiencies (buying a supplier or customer is called vertical integration)
Meanwhile, the cost savings that might be achieved by the reduction of redundant jobs and infrastructure (called synergies) can be shared by both the buyer and seller: The anticipation of lower costs going forward allows the buyer to afford a higher purchase price.
When M&A is unsuccessful, it can destroy value and especially hurt the buyer (since the seller is already cashed out). Poor due diligence, mismanaged integration and overestimation of potential cost savings are common reasons why mergers and acquisitions can fail.
Vertical Integration → In vertical integration, two or more companies with different functions in the value chain decide to merge. Because the combined entity has increased control over the supply chain, the combined company should be able to eliminate operating inefficiencies with improved quality control, at least in theory