Mergers & Acquisitions
Company Mergers
A company merger means the termination of the legal personality of two or more companies by combining their assets and liabilities and the formation of a new company.
Company Acquisitions
A company acquisitions is when a company buys enough shares of another company to control it.
Main Reasons for Mergers and Acquisitions
- Synergy Creation (Operational / Financial)
- Realization of Growth Target (Through Internal Resources / Acquisition)
- Gaining Competitive Advantage
- Ego Satisfaction
To Achieve Organic Growth in a Company;
- Making high investment expenditures,
- Achieving a strong market position,
- Efficient production realization,
- Establishing the management strategy,
- Rigorous implementation of the strategy,
However, in fulfilling these requirements;
- Lack of technology,
- Difficulty entering new markets,
- Lack of brand credibility,
- Difficulty making decisions for new opportunities,
It is possible to encounter such constraints.
Overcoming these constraints can be achieved through Mergers and Acquisitions (M&A). Horizontal M&A leads to economies of scale and increased market share, while vertical M&A results in dominance over the production chain and a reduction in production costs.
Functional M&A, on the other hand, allows for the creation of a combined functional strength, risk allocation, and the creation of new and ready-made business areas.
The processes in mergers and acquisitions are as follows;
- Planning the Merger Strategy
- Selecting the Target Criteria
- Database Research for Potential Candidates
- Evaluation of Candidates
- Movement for Planning and Unification
- Detailed Financial Analysis of the Target
- Interview Strategies and Tactics
- Analysis of organizational differences
- Planning and Implementing Integration
The meticulous management of the above-mentioned processes is of great importance for the success of the project. Erke Consulting provides professional support to business partners in managing these processes in the most effective way.