Merger and Acquisition (M&A)
What is it?
- It is a transaction that joins two different companies in which a merger creates a new entity through a fusion while an acquisition constitutes of a purchase in which the buyer gains control of the target company.
- It can also include consolidations of companies, tender offers, purchase of assets, and management acquisitions.
What to expect?
- Companies should expect a restructured corporate order with differences in methodology, procedure and outcomes for merger vs acquisition
- The possibility of a difficult transition between shareholders, management, and employees would be likely.
- The transaction would approximately last between 6-12 months on most cases and would include an extensive due diligence (financial, legal, technical, commercial, and tax) by the buyer.
- A valuation of the company or the assets are done to help justify the price set between buyer and the seller.
Who should consider
- Companies who seek to forego an existing entity or asset for the purpose of liquidation or dilution.
- Companies who are looking to increase their market size or diversify their portfolio.
- Companies who are looking to create value from the synergies of an M&A transaction.
How Can Bayfront Help
Strategy Review
Detailed analysis of the Client and advise on value-adding corporate strategies.
Competitive Benchmarking
Detailed analysis of the Client and benchmark them against Industry standards.
Structuring
Detailed analysis of the Client’s capital structure and advise on the optimal proportion of equity and debt.
Deal Execution Management
Assisting in execution of deal processes, most commonly in the form of capital raising.
Valuation
Helping to navigate through the complexities of transaction, improve transaction execution, and increase the chance of success.
Information Memorandum
For presenting to different target audience such as lenders, new sales relationships, new client relationships.
Governance Review
To determine the specific governance needs of a company and assist in areas which would minimize risks and help achieve business goals.