Merger and acquisition are two terms which are often uttered together. But it is very important to know that the two terms are slightly different from the other. When one company takes over another company and establishes itself as a new owner it is called acquisition.
When two firms of the same size and status go ahead to form a single new company it is called merger. In this case both company's stocks are surrendered and new stocks are issued in its place. Acquisitions are more common than mergers nowadays. The main purpose behind merging, selling and buying a company is to create shareholder value.
It is very important to seek professional help before expanding your business through a merger or acquisition. We have a special merger and acquisition team which helps clients with valuation of assets, preparing the business for sale, finding suitable purchasers and negotiating the sale.
Before getting into a merger or acquisition it is important to examine critical elements like tax flow considerations, financial impact, and assessment of economies of scale and product/service compatibility. We also conduct review of company's goals and objectives.
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