Redefining Business Success With IT M&A Advisory Services

By Veritis

Redefining Business Success With IT M&A Advisory Services

Every company seeks to expand its hold and gain a significant position in the competitive market. This may drive firms to either plan internal growth strategies or acquire assets, firms, or technologies to the benefit of their growth as external growth initiatives.

Working out a strategy or planning an internal growth initiative may take a considerable amount of time to generate the desired growth results. However, a corporate merger, takeover, or acquisition can prove very beneficial for faster results and can generate increased revenue and brand recognition in a shorter time.

The acquisition or divestiture of a company presents both opportunities and challenges. Our all-encompassing approach considers a deal’s financial, operational, tax, commercial IT, strategic, human capital, and cultural concerns.

In this period of intense competition and high company rivalry, mergers and acquisitions are business tactics that have become significant among industries and corporate houses. Merger and acquisitions, also known as M&A, is the practice of purchasing, disposing of, or combining commercial entities to allow the firm to expand, thrive, and make the newly merged organization more significant with improved productivity and efficiency. The goal of a merger is to increase the value of the combined entity.

Throughout the merger and acquisition process, an M&A advisory firm functions as a consultant, guide, and coach for its clients. The services frequently also take advantage of all parts of inorganic growth in an organization, which aids in boosting market share. From the start of the deal to its completion, an M&A advisory firms committed team of professionals works on behalf of its clients to achieve success.

In other words, these companies guide businesses and large corporations to navigate the different complexity and subtleties of merger and acquisition negotiations. Businesses involved in the deal are apprehensive about the entire process since it may be fraught with danger and uncertainty. However, a professional M&A consulting firm can make this complicated process simple, easy to understand, and hassle-free with effective research and strategy.

The acquisition is the term used to define the purchase of one corporation or company by another firm, company, or other commercial organization. Specific acquisition targets can be found using market research, trade exhibits, internal business divisions setting targets, and supply chain analysis. It is possible to acquire all or almost all of the assets or stock of the acquired company.

M&A (merger and acquisition) advisers are primarily in charge of advising on mergers and acquisitions to both buy-side and sell-side corporations. This is because, in addition to helping businesses with transactions, M&A consulting advisers frequently help businesses with restructuring, capital raising, and other financial issues.

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What actually is a Merger or Acquisition?

A Merger or Acquisition is the coming together of two firms or gaining assets for benefit of financial gain, brand enhancement, and sustained market presence.

This trend is not limited to large enterprises and is used as a competitive strategy. The value generated from the acquisition is called synergy (financial gain).

Though mergers and acquisitions advisory may sound simple, it can entail a long process involving huge costs, government regulations, legalities, paperwork, and more.

The following additional tasks that M&A firms can assist with:

  • Through offering services for investment advisory services advice to individuals
  • Advising on and assisting with stock issuance and placement
  • Preparing to offer new securities by underwriting them
  • Obtaining the most affordable price for the vendor
  • The company is shown to potential buyers
  • Determining the proper value of the company
  • Locating the ideal customer for the seller
  • Preventing a sale of the company for less than it
  • Make sure the sale goes through despite any difficulties that may arise, such as the buyer’s inability to obtain the necessary financing for the purchase

Why do Companies Engage in Merger & Acquisition(M&A)?

Why do Companies Engage in Merger & Acquisition(M&A)?

Here we will understand in detail why companies consider M&A consultants:

  • Growth: Many companies look at mergers and acquisitions advisory as an opportunity for growth in terms of size and competition, which could be difficult to achieve through regular growth strategies.
  • Face Competition: Competition serves as a survival factor for most companies. Because of this reason, some of them take the extra leap of acquisition to stay ahead of rivals in acquiring a brand with a value-adding portfolio of assets. The acquisitions of dot coms and telecoms in the 1990s are the biggest proof of this trend.
  • Build Synergies and Economies of Scale: Merged companies also aim to take advantage of synergy and economies of scale. Synergy takes place when two companies of similar profiles combine or get rid of double resources such as branches and regional offices, among others. This drives every single penny earned to the lowest layers of the business chain, boosting revenue and making the M&A value-adding process
  • Establish dominion: Organizations invest in mergers and acquisitions advisory services to establish dominion or superiority in a particular industry. However, this could create a situation of monopoly and result in constant monitoring and scrutiny from anti-competition watch guards.
  • Dodge Tax: Considering the US’ corporate tax advantage over other countries, most US firms resort to a corporate inversion by buying a smaller foreign competitor and moving the entity to a lower-tax jurisdiction.

M&A Advisory Firms can also help the business sale in multiple ways, including the following: –

1) Faster Turnaround

These businesses have the Important for Clients label. The most significant advantage is that working with an M&A advisory firm saves time. The business that hires it is optional to conduct its research and analysis. The firm handles it on the company’s behalf. Because the M&A consulting firm thoroughly investigates and considers every aspect of mergers and acquisitions firms, the likelihood of success is high and cannot be ruled out.

2) Assured of Genuine Buyer

These businesses frequently have an extensive network of contacts and business ties that help in the search for a prospective buyer. For their clients, they try to locate sincere buyers who might be challenging to locate in any other circumstance. The M&A Advisory Firm professionals can be trusted and relied upon to find a genuine and bona fide buyer for the business because they are a professional organization.

3) Guides in Negotiating Better Prices

They help an organization in coming to the best decision it can. Their abilities to assess the potential of the firm, gauge market demand, and determine the interests of potential buyers all work together to assist seal the acquisition at the most advantageous price.

4) Process Without Stress

You may trust an M&A firm’s expertise to handle the stress and inconveniences of an M&A transaction. You may be relieved of unfounded worries about these complex transactions if you assign these duties to a seasoned mergers and acquisitions company. An experienced M&A firm will always work to secure you the best offer in the shortest amount of time in Technology advisory services.

How M&A Firms Run the Deal-Making Process?

How M&A Firms Run the Deal-Making Process?

As discussed earlier, the Mergers and Acquisitions process can be quite exhaustive. However, this process involves a set of intermediaries consulting firms who help ease the process including:

  • Audit & Accounting Firms
  • Consulting & Advisory Firms
  • Investment Banks
  • Law Firms

Consulting & Advisory firms include technology advisory services, which guide clients through all the stages of the M&A consultant. These companies usually have a global presence and can assist the merged companies to walk through M&A, no matter where their geographical location.

The IT advisory services create a Mergers and Acquisition blueprint, following smooth infrastructure remapping that will remove any hiccups from the merger. Veritis Group Inc. has served a varied range of companies with its world-class IT solutions and over the years, gained insight into the best practices of the IT advisory services industry.

Our M&A advisory services help organizations steer through the daunting process with a carefully-designed IT M&A strategy plan and 360-degree customer support.

Benefits of M&A Advisory Companies

1) Expanded Dimensions

Businesses can quickly improve their net worth and operations by using the mergers and acquisitions firms’ procedure. Additionally, these tactical instruments support the company’s rising stock price.

2) Fewer Competitors

The newly formed company reduces competition and gains a competitive edge thanks to its combined cash and reserves.

3) Strength is Boosted

The synergy created by combining two or more businesses has the ability to, among other things, outperform other market players, ensure more outstanding performance, and produce financial gains. Additionally, it makes it simpler to draw in a broader clientele.

4) Tax Advantages

It also offers the parties involved several tax benefits. First, a lower tax burden is produced due to offsetting losses incurred by one entity against profits made by another.

5) A New Market is Created

M&A increases sales opportunities because it unites two companies. In addition, M&A can help a business enter new markets

Here’s How Veritis Can Help?

  • Improve your prospects of success by clearly defining your M&A strategy and objectives, M&A team and capability, and creating a repeatable process.
  • Breeze through the M&A advisory services process with a clearly-defined assessment that removes any fears towards deal-making identifies synergies before your competition, and plans for the integration well in advance technology advisory.
  • Draw maximum synergy from the deal with a test plan that identifies and eliminates any risks that can deprive a lot of its anticipated synergies.
  • Planning to do away with a subsidiary or asset without having to undergo major risks? Veritis experts will help you create a plan keeping in mind all the risks and preparing the asset for sale, leaving your business to normally perform even in the absence of the asset or subsidiary.

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