Title: Here is what you should do for your mergers and acquisitions-Enterslice
1Mergers and Acquisitions in India
2What is the Meaning of Mergers and Acquisitions?
- Mergers and Acquisitions often called as MA in
short form. - Companies globally adopt these strategies to grow
or survive in the competitive market. - The merger has been defined as the combination
of two or more business entities to make a new
entity. - The acquisition, on the other hand, involves one
party selling out to another wherein the buying
party combines both the entities to make it into
a single entity. - In the layman language, the merger is an
agreement that is based upon the two existing
companies that pursuit to form an all-new
company. - A merger is basically done for the purpose of
expansion of business unit - To broaden the hands in every corner of the
market making an entry to new segments for
gaining market limelight. - Whereas, the acquisition is when an existing
company or new company acquires the other company
with a legal agreement is called the acquisition.
3How can MA take place?
- Mergers and acquisitions can take place through
the following - Purchasing common shares
- Purchasing assets
- Exchanging shares for assets
- Exchanging shares for shares.
4Mergers and Acquisitions Advisory Firms
- It is the wish of every businessman to grow his
business and there are two ways for the process
it can be either through internal growth or
external expansion. - External expansion is by way of following the
process of merger and acquisition and this path
is very popular among companies as it helps in
crossing trade barriers, enables free of capital
across countries and combats the increased
globalized competitiveness. - In merger two companies combine together with new
name. And in acquisition, one company buys the
other company.
5MA Advisory Services
- Mergers and Acquisitions in India have been
evaluated at USD 61.26 billion in 2017-18 whereas
it was USD 27.62 billion in the previous
financial year, 2016-17. - Mergers and Acquisitions are great means to
achieve growth for a company but involve complex
steps and processes to be followed by the
involved entities to form the new business. - The Companies Act, 1956 and 2013 needs to be
followed for MA to get through, with involvement
from Court, SEBI (Securities Exchange Board of
India) in case of listed companies, the Central
Government in the form of an Official Liquidator
(OL) and the Regional Director of the Ministry of
Corporate Affairs etc. - Since there are different parties involved, the
process is long drawn, tedious and at times
problematic.
6MA Advisory Firms
- Audit Accounting Firms these firms specialize
in auditing, accounting, and taxation matters. - They provide expert financial advice as MA
advisory firms. - Consulting and MA advisory firms these firms
provide dedicated MA support whether it is
cross-industry or cross-border as their team has
industry experts to help decide the best MA
strategy.
7Why Enterslice?
8Thank you
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