Vertical : A vertical merger or takeover is one that occurs between a company and a close collaborator, either a supplier or a client. It is one of the most popular and has a clear objective and usually generates good results, which is none other than to move up the production chain and become a benchmark in the sector.
Mixed : One of the formulas used in mergers and acquisitions operations is one in which firms operate in unrelated areas.
In all three cases, the strategy is implemented in different phases and it is important to take them into account. Currently, mergers and acquisitions go through stages ranging from the initial phase, the start-up phase, the stage in which everything is prepared, to the stage of integration and adaptation of the merged/absorbed companies to the parent company.
Start . Initially, what is to come is prepared. It is a strategic decision and many aspects must be taken into account.
Audit . A thorough examination of the target company or companies is necessary to identify potential risks that have not been taken into account.
Negotiation and signing of contract . The parties must agree on the terms of the agreement when dealing with mergers and acquisitions. The contract is then drawn up and signed by all parties involved.
Execution of the transaction . The conditions agreed czech republic whatsapp data upon after signing must be met.
Integration . This is the last and probably the most important, both for the acquiring party and for the opposing party, the object of the merger or acquisition of the business.
What is the difference between merger and acquisition?
As you might expect, there are significant variations between the process of business mergers and acquisitions when referring to an M&A strategy . Broadly speaking, the main difference between a merger and an acquisition is the following and it goes through the concept itself that involves merging and acquiring a business:
A merger is the union of two or more companies. In these cases, both are completely dissolved and a new company is created, either by one of the parties.
An acquisition involves the taking over of a company by another company, which is the one that takes control.
These operations are taken in economics as an indicator of the economic context both at a national and international level and the increase or decrease of these actions depends on situations such as recession, higher or lower inflation, security contexts and/or uncertainty, etc. Factors such as these and many others lead to an increase or decrease in business mergers and acquisitions .
At the beginning of the article we focused on how we are dealing with a concept that is dealt with in studies related to business management and administration. At EAE Barcelona there are proposals that deal with terms such as 'm&a', in subjects that are included in the Master in Finance and the Master in Entrepreneurship . It is important that those students and/or professionals who want to advance in their careers promote it by improving their knowledge and their CV.
The key is always to opt for quality training that, in this case, allows for more effective and innovative financial management, both for large companies and digital businesses. The current economic system requires being constantly aware of trends in business strategies – such as mergers and acquisitions – in order to respond.