Mistake is the most avoided factor in the corporate field because if you will commit just a single of it, then everything will fall down. During crisis, the most affected are the manufacturers and distributors of goods. Once the consumer is at crisis, it will create a domino effect and business cannot get rid of it. Once a business is at its path to bankruptcy, there will be a merger and acquisition consulting to insure that the business will remain intact.
There are six stages of merger and these stages must be done according to the order for missing one will lead to failure. This is because, each stage is very essential and you cannot do a shortcut for it. If someone will attempt to create a shortcut, then everything bad follows.
The first one is the business valuation. In which both companies are to be examined and evaluated by the share holders of the both companies. This would include the history of both with regards to profit gaining, the strengths, the structure, the culture, the expenses, the issues, and other corporate factors that might create harm or good to everyone.
Then the proposal stage in which one of the party will send a proposal or representatives from both will formulate one. This should include all the supporting details about the fusion of the two institution like the new production structure, new constitution and by laws, new logo if required or even new products and clients.
The third stage which is the planning exit will only occur if the proposal will receive a half plus one vote from the group of share holders. The stage would somehow need more time because some company are to separate themselves into a group of companies if they wish to transfer their assets to another. This will be the time that everything will be rechecked again including the current and old financial reports, corporate related issues and other that would affect the future empire.
Then once the phase is done, there will be a deal structuring. In this, the leading company would formulate such and present it to the other one. This is also somewhat a proposal but the only difference is that the merger had already been done. This process will be focusing on how to improve the future company.
Integration will come next, this will be the time that everyone will be informed about the reformulated deal. The signing of contract is part of this because this stage allows everyone to finalize all the papers to seal the bond between companies. If one would disallow, it is either to make a new one or let him go.
Operating of venture will then proceed. This will be the time that they will put everything they risk in the market. This is to see if the expectations were met or not. Everything will function as what the agreement has said.
Merger and acquisition consulting is still needed even if you already know the process. The phases discussed above are just the cherry of the cake and therefore still needs a thorough discussion. For critical topic like this, a lawyer is very ideal to consult with.
There are six stages of merger and these stages must be done according to the order for missing one will lead to failure. This is because, each stage is very essential and you cannot do a shortcut for it. If someone will attempt to create a shortcut, then everything bad follows.
The first one is the business valuation. In which both companies are to be examined and evaluated by the share holders of the both companies. This would include the history of both with regards to profit gaining, the strengths, the structure, the culture, the expenses, the issues, and other corporate factors that might create harm or good to everyone.
Then the proposal stage in which one of the party will send a proposal or representatives from both will formulate one. This should include all the supporting details about the fusion of the two institution like the new production structure, new constitution and by laws, new logo if required or even new products and clients.
The third stage which is the planning exit will only occur if the proposal will receive a half plus one vote from the group of share holders. The stage would somehow need more time because some company are to separate themselves into a group of companies if they wish to transfer their assets to another. This will be the time that everything will be rechecked again including the current and old financial reports, corporate related issues and other that would affect the future empire.
Then once the phase is done, there will be a deal structuring. In this, the leading company would formulate such and present it to the other one. This is also somewhat a proposal but the only difference is that the merger had already been done. This process will be focusing on how to improve the future company.
Integration will come next, this will be the time that everyone will be informed about the reformulated deal. The signing of contract is part of this because this stage allows everyone to finalize all the papers to seal the bond between companies. If one would disallow, it is either to make a new one or let him go.
Operating of venture will then proceed. This will be the time that they will put everything they risk in the market. This is to see if the expectations were met or not. Everything will function as what the agreement has said.
Merger and acquisition consulting is still needed even if you already know the process. The phases discussed above are just the cherry of the cake and therefore still needs a thorough discussion. For critical topic like this, a lawyer is very ideal to consult with.
About the Author:
Read more about The Process Of Merger And Acquisition For Starters visiting our website.
No comments:
Post a Comment