- Investment banking
- INVESTOR RELATIONS (IR)
- Asset management
- TRANSACTIONS WITH SECURITIES
- SECURITIES CUSTODY
Mergers and acquisitionsis is a set of business combination processes, which resulted in the appearing enlarged company instead of several smaller ones. In the course of these transactions, there is a transfer of corporate control, including the purchase and exchange of assets. The merger is the integration of two or more business entities into one economical unit. Absorption involves the establishment of control over the business entity through the acquisition of more than 30% of its share capital, while maintaining the legal autonomy.
M&A are proceeding in three main areas: horizontal merger (a merger of one sphere companies), a vertical merger (a merger of one industry compamies, which specialize in different areas of business), conglomerate (the merger of companies from different industries). Mergers and acquisitions is a strategic tool of company growth, it is a sophisticated procedure which can carry risks for the company. Thus, the process of M&A should be balanced and structured, with clear strategic objectives and prepared implementation plans.
Our M&A practice covers internal and international transactions and includes merger, acquisition, MBO (management buyout), LBO (leverage buyout), formation of joint ventures, as well as other types of transactions. We act both on behalf of a buyer and a seller.
To achieve goals the company put, while deciding to conduct M&A, we resolve following tasks:
- ensure company development , business expansion;
- increase the business organization efficiency (synthetic effect), the optimization of income and expenses ratio;
- improving the quality of management;
- maximize business value when preparing it for sale;
- increase the market share;
- reducing the influence of rival until its purchase;
- capitalization of business
The risks of M & A include loss of control under the company, the inability to achieve synergistic effects by a failed integration with the purchased object, underestimation of competitors actions, debt burden and focus of the Antimonopoly Committee increase.
Our transactions support services include:
- target market analysis;
- feasibility study of a transaction;
- identification of criteria and search for a target investor or object for purchase, development of a suitable business strategy;
- valuation of business (target entity);
- analysis of financial, legal, and management documents (due diligence);
- negotiations on price parameters of a transaction;
- structuring, support, and close of the deal.