Mergers and acquisitions
Merger or acquisition transactions
Businesses evolve, and so does the business environment. At Coveney Nicholls, we are dedicated to helping our clients not just survive but thrive through mergers and acquisitions. Drawing on our experience, we ensure transactions are completed to the highest standards, combined with our in-depth personal understanding of our clients’ businesses, to make sure such strategic decisions are carried out with minimal disruption. Mergers and acquisitions involve business transactions where two companies come together, with one company purchasing or merging with another to gain control, expand into new markets, or increase market share.
How we help
We support acquiring companies in assessing and integrating acquired firms to guarantee smooth transitions and maximise value by tapping into new customer bases. It is vital to carefully evaluate the target company’s business operations, production facilities, and human capital to ensure a seamless handover. Companies involved in mergers and acquisitions often encounter integration challenges, particularly when blending different business models or production processes.
When it’s time to sell, we are here to help you secure the best price and ensure the transaction proceeds smoothly. The purchase price and tax benefits are key considerations for both the acquiring firm and the target firm during negotiations.
We have been involved in the sale or merger of numerous clients to major UK banks and international companies, often securing a majority stake in the process, and have frequently retained the audit appointment post-transaction. Such deals may involve horizontal mergers, vertical mergers, or conglomerate acquisitions, depending on whether the companies operate in the same business sector, the same industry, or entirely different industries.
What can a merger do for you?
Mergers often result in the creation of a new legal entity, broadening capabilities and market reach by combining different product lines. When two firms merge through a horizontal merger or product extension merger, a new company is formed with a stronger competitive position and greater market power. This legal consolidation is essential for understanding the structural and strategic implications of these transactions.
Horizontal acquisitions and market extension mergers help companies grow their customer base and enhance their value chain, though they may also face regulatory approval. In the service industry, such mergers and acquisitions allow companies to manage larger clients and improve their offerings, which might not be possible individually.
Vertical mergers enable companies to gain better control over their supply chain and boost efficiency, but can also present integration challenges. Management acquisitions and transactions, where a company goes private, such as management buyouts, can lead to a company becoming privately owned.
Additionally, we provide advice on reverse mergers as an alternative route for private companies to become publicly listed. A reverse merger allows a private company to become publicly listed by acquiring a shell company, often a quicker process than a traditional initial public offering.
Mergers and acquisitions can have a significant impact on share price, intellectual property, and the overall value of the companies involved. It is crucial to assess the target business and its strategic fit, particularly regarding assets and market position. The success of a merger or acquisition often hinges on the compatibility of the companies’ business sectors, products, and customer bases.
Get in touch for advice regarding mergers and acquisitions.
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Rigorous forecasting is the best way to ensure your business can weather difficult times and to make the most of its potential for growth and expansion.
Let’s talk today
Our tax experts will be happy to have an exploratory conversation, free of charge, so that you can discover for yourself what make Coveney Nicholls the intelligent choice for businesses and individuals in need of tax advice.
