Merging with Another Business
“The complete package when looking for sound strategic advice and the network to take a brand on to the next level globally”
— Selma Terzic, MD of KIKO Milano
Mergers in business are ultimately about turning two separate companies of a similar size into one new legal entity to increase value.
There are different types of mergers, depending on the desired outcome of the companies involved, but all mergers share a similar overarching goal, namely, to increase shareholder value. Whether you are looking to increase your market share by entering a new market, secure more resources, or to expand your product offering, our team of M&A experts at Accelve will help to ensure that your merger is successful.
Developing your Merger Strategy
We will first determine if a merger is the right route for your business. As there are several factors to consider, to ensure you are merging with the right business, you can count on us to take you through these complex considerations, from cultural alignment to financial reports, to help you develop a strong merger strategy
Initiating the Merger
With a clear strategy in place, we will assist you when approaching your desired business partner to initiate the conversation of merging together. Although mergers often happen between existing business relationships, having experienced and trusted advisors supporting you early on in this process is crucial to ensuring that communication remains open and honest, as this can strongly influence the success of the merger later in the transaction.
Managing the Process
You can rely on us to guide you through the entire merger process, including supporting you with any challenges that might crop up along the way. We will also carry out the necessary due diligence for both businesses involved, which consists of a detailed report of all the financial and tax, IT, operational, market and commercial aspects. This will then provide both parties with assurance of what they’re getting and support the valuations of each business. We will also oversee the deal completion process, making sure that all stakeholders involved agree to a timeline to make the merger a success.
Post-Merger Plan of Action
Once the merger deal has happened, there is still a lot of work that needs to be done to ensure that the merger itself is a success, both in the short and long term. This all comes down to the quality of the plan and how it is implemented across the new business, with communication being the most crucial factor, particularly from management. Rest assured, we will support you with all of this, and more, as part of the strategy development phase.
The Alternative Non-M&A Route
Unlike many traditional corporate finance houses, we can also find and facilitate alternative non-M&A options to get you where you need to be. We believe this promotes a more transparent and honest appraisal of the benefits and drawbacks of any M&A opportunity. We will never shy away from telling you to walk away from a deal or identifying better, internal strategic changes that exploit your brand further for you.
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FAQs
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Our team are senior level deal doers with hundreds of deals under their belt. We are the trusted advisor for many businesses and have helped to successfully build and execute numerous mergers. These transactions can be technically challenging whilst also need careful management of relationships that need to established and maintained post transaction. We will be available to you the whole way throughout the transaction whether that is late at night or at the weekend whatever it takes to get the deal across the line.
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A merger is when two or more separate companies combine to form one new legal entity and most or all original shareholders remain invested in the new company. An acquisition, on the other hand, is when one company takes over control of another company and so the stakeholders of the acquired entity typically exit in exchange for cash or loan notes.
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Businesses that share a similar vision and values tend to be a good fit for a merger as no one party is in control of the other. Likewise, if you have a strong working relationship with the senior management team of the other business, this is a good indicator that the merger will be a success.
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With two separate entities merging into one new entity, it’s important to be aware of the changing dynamic that this will bring to the new business, include decision-making and the impact it will have on the employees. Although a merger brings lots of new opportunities, there will be times when owners will need to compromise more than before.
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We typically help any business with an EBITDA of £1 million and up although will also look at high growth start ups on a case by case basis.
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Depending on the businesses and complexity involved, the M&A process can take around 3 to 6 months to complete although can be longer. Whilst it can be useful to draft a timeline, we always advise our clients to factor in additional time for any unforeseen challenges or delays.
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Whilst we have specific sector knowledge as a result of the different deals we’ve made happen, we work with many different sectors, so our experience remains very diverse. This naturally means we bring unique insights to our clients, helping them to create robust business plans and completing the deals they want.
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Our fees vary depending on the scope of the engagement. Our corporate finance related fees tend to have a large component which is based on the success of a transaction completing. Our strategy advice fees are normally charged as monthly retainer fees or charged on an ad hoc time basis. Our fees are always tailored to your specific needs, ensuring we are completely aligned.
A selection of brands our team have worked with
Recent insights.
