Merger and acquisition largely refer to the act of consolidating companies or assets to combine forces. It also diversifies products and helps business owners gain a competitive edge.
As per latest report, the M&A deal flow crossed the $82 billion mark in 2020. This is a 22.9% increase from that of 2019, showing brilliant prosperity despite the market uncertainties of 2020. Such statistical details prove why there is a rising demand for a merger and acquisition company in India like Tecnova, among foreign investors.
Merger and Acquisition: A brief overview
The terms Merger and Acquisition have widely different meanings, yet they are often used as synonyms.
- Merger: When two companies join forces to form a new organization under one corporate name is a merger.
- Acquisition: When a company completely takes over an existing firm’s shares, it is an acquisition.
Merger and acquisition are of four types:
- Horizontal- When two companies offering the same products and services come together, it is a horizontal M&A.
- Vertical- Vertical M&A refers to the act when two companies with different product and services join their forces.
- Conglomerate- The merger between two companies from entirely different industries offering distinct products or services merge, it becomes a conglomerate.
- Concentric- The joining of two companies with the same customer base but different offerings is known as concentric M&A.
There are primarily 4 stages of merger and acquisition:
- Deal Preparation
- Integration Process
Inbound and Outbound M&A
Inbound M&A – A cross-border merger in which the resulting joint firm is an Indian company.
Outbound M&A – A cross-border merger where the resultant company is a foreign organization.
Tecnova is a leading merger and acquisition company in India that offers end-to-end assistance in the execution of cross-border deals. It is an exclusive Indian member of the leading international network of Banking Boutiques and Corporate Finance Advisory firms called “Pandion Partners”.