Merger of Companies:
The Merger of Companies is a legal instrument applied when two or more organizations are merged, thus being able to originate a new entity.
Mergers allow companies to access the opportunity for development in the market, namely the following as an example:
• Access to better production chains and suppliers;
• Lower costs.
Through the Merger of Companies, vertical or horizontal concentration of operations takes place, giving rise to many market advantages.
The Merger of Companies makes it possible to reduce costs and make companies competitive in the distribution of products.
Mergers can allow the elimination of competition, generating a larger market share.
Difference between Mergers and Acquisitions?
The Merger of Companies is a process developed by two or more organizations that combine their assets to create a new entity.
Mergers are usually made with companies of similar size.
In Business Acquisition, a larger company usually buys a smaller company and controls its entire assets.
The main reasons that lead companies to mergers and acquisitions are related to:
• The search for efficiency in production, producing more at a lower cost;
• The decrease in duplicate activities.
Mergers and Acquisitions processes also allow companies to access new markets or improve their competitive position in the activity sector.
Many companies also aim to obtain a dominant or monopoly position.
Success Methodology
We take care of all the steps related to company mergers processes, including:
- Financial evaluation
- Confidentiality agreement
- Audit
- Definition of the type of investments
- Investment Contract