M&A and corporate restructuring represent an important aspect of the corporate finance world. Every day, specialized firms and investment bankers around the world arrange M&A transactions, which bring separate companies together to form larger ones. When they’re not creating big companies from smaller ones, corporate finance deals do the reverse and break up companies through spin-offs, carve-outs or tracking stocks. Deals can be worth hundreds of millions, or even at times billions of dollars. They can dictate the fortunes of the companies involved for years to come. For a CEO, leading an M&A operation can represent the highlight of a whole career.
At Tokyo Consulting Firm, our presence in twenty-four countries in the world and our extended network gives us an edge in the market. Our professional network, which comprises law firms, accounting firms, and chambers of commerce in each of these countries, gives us the necessary local understanding required to perform M&A operations. The resources and knowledge that we have acquired through our experience and network place us at a top position to initiate, follow, and execute the required actions to achieve successful Mergers & Acquisitions.
M&A have a profitable side that can create potentially enormous profits for a company, and expose the business to a myriad of financial resources. For a company that is on the verge of bankruptcy or in some kind of financial trouble, merging with another company may become the only way to not only save the company, but also to free up some much-needed cash and credit.
Acquiring a business for the purpose of creating a conglomerate or a quick sale and turning a profit is part of the allure of M&A. The organization thoroughly investigates the business dealings between the parties involved in either the merger or business acquisition. The proper documentation must be presented as well as the reason for the merger or business purchase. Stakeholder’s concerns must be addressed because once the deal is finalized, all company debt and stakeholder’s issues are inherited by the new ownership. Employees of the company being merged must be fairly compensated, or offered a position within the blended company, re-trained, or referred to another company.
On the other hand, there are certain challenges faced by M&A operators. For instance, in certain countries, regulations prohibit the purchase of land or any type of property or business, making it impossible for M&A to develop. Nowadays there has also been a surge in the merging of businesses with one another, and in some cases, hostile take-over. Finally, M&A trends are cyclical, and with banks and other lending institutions refusing to extend credit or make loans, the merging of businesses can slow down dramatically. And, while everything associated with M&A seems nothing less than a daunting task, we at TCF India are here to take care of each of your needs with its reliable Merger and Acquisition services in India.