ACQUISITIONS ~ MERGERS ~ DE-MERGERS ~ SALE OF BUSINESS
In Business Combination two or more corporates or their net assets are brought under common control in a single business entity
Corporates involved in similar line of activities opt for Business Combination to get economies of large scale production and to minimize competition
Business Combinations results in growth. Other terms applied to Business Combination are Merger and Acquisition
In 'Merger' two or more corporates of similar nature combine willingly while in 'Acquisition' a bigger corporate takes over a smaller company. Business Combination can take place either through amalgamation or through absorption
A + B = C where C is the new entity which acquires A & B ; A and B are liquidated later (Acquisition / Amalgamation)
A + B = A where A acquires B ; B is liquidated later (Absorption / Merger)
Corporates involved in similar line of activities opt for Business Combination to get economies of large scale production and to minimize competition
Business Combinations results in growth. Other terms applied to Business Combination are Merger and Acquisition
In 'Merger' two or more corporates of similar nature combine willingly while in 'Acquisition' a bigger corporate takes over a smaller company. Business Combination can take place either through amalgamation or through absorption
A + B = C where C is the new entity which acquires A & B ; A and B are liquidated later (Acquisition / Amalgamation)
A + B = A where A acquires B ; B is liquidated later (Absorption / Merger)
A De-Merger is a form of corporate restructuring in which the entity's large business operations are segregated into one or more legal entities. It is the converse of a Merger or Acquisition
De-mergers can be undertaken for business and non-business reasons such as government intervention, anti-trust law, or decartelization
Divestiture is the sale of one or more of a company's subsidiaries or one of their business segments
Business combinations, De-mergers and Sale of Business involve complex accounting, shareholder issues and other intricacies
Our "Independent" Professional Services would include
- Perform Due Diligence
- Valuation of Business
- Participate in negotiations till execution of the deal
- Compute the purchase consideration and goodwill
- Structure the complete deal
- Prepare / review agreements required to enable smooth transfer of shares
- Act as Escrow agents
- Assist in the complex accounting involved in Business Combinations
- Assist in the complex shareholders issues arising due to Business Combinations
- Audit the opening & closing financial statements of the Acquirer and the Acquired respectively