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01 November 2013

Choosing Merger And Acquisition Consulting Services

By Allyson Burke


The process of a company merging with another or a larger company acquiring a smaller one can be complicated. There are numerous factors involved and it can be difficult to reach an agreement that benefits all the parties involved. This is why you may wish to consider using merger and acquisition consulting services.

When companies merge there are a number of potential issues. One of the biggest concerns is that this can reduce competition. It is these legal complications that can result in a merger being stopped in order to prevent a monopoly being formed. If this is a concern then it is best to use a consultant that specializes in anti trust laws in order to ensure that the deal will not break any anti competition rules and will not result in a monopoly.

Conversely for the smaller company being bought there may be concerns about the running of their business. Some customers may be concerned that the larger company will affect the quality of the product that the smaller company offers. Another problem may be that when the merger takes place people may lose their jobs as stores close to accommodate the new merged brand.

This is what can make negotiations complicated. Therefore it helps to have someone in the middle looking at the situation from a neutral perspective. This person will not have a direct stake in the merger or acquisition and so will be more likely to look purely at the details of the deal and how it can equally benefit both parties involved.

In this instance you need someone who has sufficient business experience to look at the financial details of a deal. Ideally this should not be purely theoretical. If they can show that they have been involved in a number of successful deals as a result of their consultation then it is more likely that their services will benefit you, especially if they have worked for companies in the past.

The reality may well be that the larger company will not drastically change anything. Indeed the branding and type of product may not necessarily look any different. However the problem is often as much the perception of a company taking over as it is the reality of the deal between the parties involved. This is why it helps to have a consultant who has some knowledge of PR so that any deal can be properly explained and shown in the most positive way.

Whoever you choose to consult on a deal you need to be sure that they know what they are talking about. While working on a number of deals for a long time is good ideally you also want someone who has been involved in a number of successful deals and can demonstrate how their consultancy benefited the parties involved.

You can find a number of merger and acquisition consulting services online. It is best to look for at least three so you can compare what is available. Experience is important but it is vital to consider who is most appropriate for your particular circumstances. With a sensible approach you will find the right one to suit your deal.




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