M&A (mergers and acquisitions)
M&A (mergers and acquisitions) activities are complex processes used to achieve a company's strategic goals. These processes include different types and methodologies, which can be analyzed through several key aspects.
Types of M&A activities
Mergers
This happens when two businesses combine to create a new legal entity. Mergers can be horizontal (between competitors), vertical (between different levels of the supply chain) or conglomerate (between companies from different industries).
Acquisitions
In this case, one company takes over another. Acquisitions can be classified as friendly or hostile, depending on the approach and consent of the target company.
Strategic alliances
These are collaborations between two or more companies that agree to work together on certain projects, without creating a new legal entity.
Joint Ventures
This type of M&A involves the establishment of a new entity by two or more companies that share resources and risks.
Methodology of M&A activities
Preparation and planning
Preparation includes market analysis, identification of potential targets and assessment of strategic needs. This step often uses secondary data sources, such as financial statements and competitor analyses.
Due Diligence
This is the key stage where a detailed analysis of the target company is carried out. This process involves reviewing the financial, legal and operational aspects of the business to identify potential risks and opportunities.
Structuring the transaction
Here, the method of financing the acquisition is decided, whether through cash, shares or a combination of both. The structure of the transaction can significantly affect the success of the integration.
Joint Ventures
This type of M&A involves the establishment of a new entity by two or more companies that share resources and risks.
Evaluation and post-mortem analysis
After integration, it is important to analyze the success of M&A activities. This analysis may include evaluating financial results, employee and client satisfaction, and achieving strategic goals.
