Mergers and Acquisitions
A primary goal for every business is to continue to grow and expand. Generally, there are two ways a company can accomplish this, through internal growth or external expansion. Internal growth happens through the regular growth trajectory of a company. This path often takes time for the business to yield the growth results you’re wanting. External growth on the other hand usually entails the option of corporate restructuring. This type of growth usually takes place when mergers, takeovers, or acquisitions occur.
A merger or acquisition usually occurs when one company either merges or acquires a different company. The idea is that by combining these two companies you’ll be creating more value than what the companies were worth individually. This additional value added to the companies due to a merger or acquisition is called synergy. This process can be very daunting as it requires large sums of money, paperwork, government regulations, legalities and accounting procedures.
It’s important to bring in a firm that knows what they’re doing when going through a merger, takeover or acquisition. A good firm will facilitate the process by guiding their clients through these transformative, complex corporate choices. Paragon Private Wealth Group knows how to navigate these rough waters and help make the transition as seamless as possible.
Mergers and Acquisitions
A primary goal for every business is to continue to grow and expand. Generally, there are two ways a company can accomplish this, through internal growth or external expansion. Internal growth happens through the regular growth trajectory of a company. This path often takes time for the business to yield the growth results you’re wanting. External growth on the other hand usually entails the option of corporate restructuring. This type of growth usually takes place when mergers, takeovers, or acquisitions occur.
A merger or acquisition usually occurs when one company either merges or acquires a different company. The idea is that by combining these two companies you’ll be creating more value than what the companies were worth individually. This additional value added to the companies due to a merger or acquisition is called synergy. This process can be very daunting as it requires large sums of money, paperwork, government regulations, legalities and accounting procedures.
It’s important to bring in a firm that knows what they’re doing when going through a merger, takeover or acquisition. A good firm will facilitate the process by guiding their clients through these transformative, complex corporate choices. Paragon Private Wealth Group™ knows how to navigate these rough waters and help make the transition as seamless as possible.
FAQ’s About Mergers and Acquisitions
A merger is the integration of two companies, usually into a new company. This process is often referred to as an amalgamation. Usually, the previous companies are disbanded. Mergers are frequently seen as ‘friendly’ and can result in the two companies becoming equal partners in the new company.
An acquisition is one company buying another company, or a controlling interest in its shares. The acquired business usually converts to a subsidiary of the acquiring company. These tend to be far more frequent than mergers.
Technically yes you can. Although it is probably not the wisest decision. The merger and acquisition process is very complex and time-consuming. And when dealing with your life’s work, it’s tough not to get emotional or possibly see value where others don’t. That’s why it’s highly recommended to get the right counsel during this process to ensure that you get the best value for your company.
Yes, this is what usually establishes the value of your company to potential buyers. Usually there are several factors that weigh in to the value of your company. This could include the industry you’re in, the product exclusivity, reliable and repeatable processes, contracts you may have, or other intellectual property.
FAQ’s About Mergers and Acquisitions
A merger is the integration of two companies, usually into a new company. This process is often referred to as an amalgamation. Usually, the previous companies are disbanded. Mergers are frequently seen as ‘friendly’ and can result in the two companies becoming equal partners in the new company.
An acquisition is one company buying another company, or a controlling interest in its shares. The acquired business usually converts to a subsidiary of the acquiring company. These tend to be far more frequent than mergers.
Technically yes you can. Although it is probably not the wisest decision. The merger and acquisition process is very complex and time-consuming. And when dealing with your life’s work, it’s tough not to get emotional or possibly see value where others don’t. That’s why it’s highly recommended to get the right counsel during this process to ensure that you get the best value for your company.
Yes, this is what usually establishes the value of your company to potential buyers. Usually there are several factors that weigh in to the value of your company. This could include the industry you’re in, the product exclusivity, reliable and repeatable processes, contracts you may have, or other intellectual property.
