M&A is the master discipline of corporate finance
The term M&A refers to a merger of two companies into a legal and economic entity or to an acquisition of business units or an entire company. M&A activities are often referred to as the master discipline in investment banking and corporate finance. As a rule, this is done within an organized process involving several internal and external specialists. With our many years of experience from various transactions, cometis supports you with a broad range of services in your M&A transaction.
Harnessing company potential with mergers & acquisitions
There may be several motivations to sell a company or business area. A changing company strategy, for instance, may lead over time to some business units simply not fit into the overall enterprise. The term M&A also includes the sale of companies in the course of sustainable succession plan.
On the buyer side, acquisitions are often the result of a “buy or build” decision. Instead of rebuilding a business unit completely, it may be more advantageous to buy an existing, strategically complementary business. At the same time, growth through acquisitions is usually much faster to achieve than purely organic growth. Business growth, opening up new markets, expanding the product portfolio – all of these are possible reasons for share and company acquisitions.
A look at the M&A process
The M&A process usually begins with the search for suitable target companies. If a target is found, assessment of the takeover candidate (due diligence) takes place. If strategic advantages and synergies can be identified, negotiations with the shareholders and/or management of the target then follow. A letter of intent may confirm the intention of the two parties to successfully carry out this transaction. A bilateral contract design is supported by law firms, auditors, corporate consultants and M&A and corporate finance consultants. In addition to determining purchase price, definitions are also drawn up for share acquisition type, payment method and the provision of necessary financial resources. After the purchase process, investor controlling ensures that the investor is constantly monitoring the development of the target.
Creating competitive advantages through M&A strategy
Empirical studies show that more than 50 percent of M&A transactions do not bring the value accretion and return on investment that shareholders had hoped for. Nevertheless, they remain an important part of a company’s long-term value strategy. A well thought out M&A strategy can lead to decisive competitive advantages – particularly in economically turbulent times..
Proper communication is crucial to ensure a successful merger or takeover. As a competent partner with many years of experience in the M&A transaction consulting, we develop a strategic communication plan with you that not only takes content and legal aspects into account, but operational aspects as well. Clearly defined core messages, arguments and communication objectives during the transaction process successfully reach each participating interest group.
Our service spectrum in the M&A process:
- Strategic communication advice
- Supporting M or A story development
- Interim media spokesperson
- Support for cultural due diligence
- Comprehensive communication project management
- Conception and coordination of all communication and advertising measures
- Support for addressing all relevant target audiences (journalists, investors, analysts, rating agencies, shareholder representatives, employees, trade unions, business partners and customers)
- Preparation for premature and unplanned publication of confidential information (leakage/fallback strategies)
- Continuous media observation and evaluation
- Analysis of media, investor and analyst perceptions (qualitative resonance analysis)
- Analysis of transaction targets and possible scenarios
- Analysis of the shareholder structure
- Creation of information material
- Conception of online activities
- Preparation for attack with friendly and hostile course
- Management coaching, presentation and interview training, question and answer catalogs (fair/unfair dialectic)
- Post-M&A communication for company integration (post-merger integration)