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Many micro and small market companies are
accelerating their growth through mergers and
acquisitions. An acquisition can offer a company
an excellent opportunity to expand its
operations either vertically or horizontally.
Successful acquisitions are the result of well
conceived corporate strategy. Where possible,
our M&advisory roles extend from involvement in
the development of corporate strategy to its
execution.
To identify acquisition candidates, it is
important to undertake an extensive search based
on our client's strategic, operational and
financial criteria. Once identified, the target
candidate's business, competitive position and
future prospects should be analyzed. Whenever
possible, determination of the value of the
target to its current owners as well as our
clients should be established. Value to the
client will be based on the proposed strategy
for managing the business and any synergetic
benefits that might be realized.
There is far more to conducting an acquisition
than combining two sets of financial statements,
reducing operating costs and forecasting
earnings and cash flow on a proforma basis.
Other factors to be considered include:
• The role of the seller and
the buyer in the newly formed company.
• The effect that the acquisition will have on
existing customer and supplier relations.
• The results of merging two
corporate cultures which may be radically
different from one another.
• Determining the fair and
accurate value of the target company, as well as
the structure of the transaction and how it will
be financed.
Allegiant Financial Group
provides practical transaction management
throughout the M&A process including:
• Determining strategic
options
• Establishing realistic
objectives and acquisition criteria
• Identifying and analyzing
potential targets
• Conducting shareholder value
analysis
• Advising on structuring and
pricing the transaction
• Raising acquisition finance
• Managing the process for
achieving shareholder, and where necessary,
regulatory approval
• Managing the due diligence
process
• Negotiating and closing the
transaction
• Assisting with post
acquisition integration and restructuring |
