Mergers and Acquisitions
Mergers and Acquisitions (M&A) are powerful business instruments for boosting corporate growth and expansion.
Defined as a legal consolidation of two companies into one, mergers and acquisitions can take place through various types of financial transactions, such as amalgamations (mergers), takeovers (acquisitions), consolidations, purchase of shares, purchase of assets, or management-led buyouts (MBO).
Companies usually unite into a single entity because they want to create more value and exceed their individual performance. Through this undertaking, they intend to combine their gains, minimize their losses, develop new opportunities, reach bigger markets, accelerate growth, and maximize profits.
Some M&A transactions are also carried out for strategic alignment and technological upgrades, especially with the nonstop changes and developments brought about by the current digital economy.
As a business model, e-commerce has all but crushed every conceivable boundary set by time and space. It has flung businesses into a global marketplace that is not bound by geography or time zones, thus generating exceptional M&A opportunities beyond borders.
Growing your business through mergers and acquisitions in the new economy calls for a trusted legal partner who not only specializes in the laws and processes around these types of business transactions, but is also adept with current innovations in digital technology and how they can be utilized profitably in achieving your business goals.
At Veritas Global, our lawyers are not only well-versed in the specialized fields of commercial law and financial technology but are also highly proficient in dealing with cross-border transaction management and international trade laws, culled from years of experience in representing clients based all over the world. Likewise, Veritas Global’s lawyers have direct experience in the cross-border sale and acquisition of blockchain-based businesses.
M&A in a post-pandemic era
In view of the heavy losses that Covid-19 has brought about to many industries and organizations worldwide, the Harvard Business Review sees mergers and acquisitions as vital tools for recovery in the post-pandemic era, where companies severely impacted by the economic lockdown will be greatly in demand. Potential buyers are advised to ensure that their valuations, deal structures, growth incentives, and talent retention proposals are “creative, compelling, and yet simple enough to be convincing to win the bid.”
The Forbes Business Council concurs: “Much like the period during and after the dot-com crash, the current pandemic makes many of the smaller building blocks available to create larger, stronger, more profitable entities.”
From a business perspective, there is currently an unprecedented number of M&A opportunities on the market in the wake of floundering companies that have become “ripe for consolidation and roll ups.”
Amid this disrupted and volatile marketplace, experts view M&A transactions as “win-win” solutions for rescuing failing companies and the jobs they provide, while at the same time, allowing clients to continue availing of their products and services.
Modern solutions for real world problems
We all know that with great opportunity comes great risk, especially in an unfamiliar and evolving market. As economies around the world reopen, they are also expected to enter into a “new normal” in which they have to contend with the unfamiliar realities that are shaping the latest policies, regulations, incentives, and reforms.
At the same time, there is the uninterrupted and aggressive growth of e-commerce, which has been driving massive shifts in how companies do business, pushing even the most traditional corporations to keep pace with the times and explore the myriad of possibilities offered by electronic platforms and digital sales revenues.
Mergers and acquisitions are known to be complex and contentious to begin with, and in a post-pandemic recovery period, they could even be more complicated from both the legal and commercial perspectives.
This is why having a skilled, focused, and reliable strategic partner like Veritas Global is vital in navigating today’s challenging M&A environment. We are committed to guiding you through every step of the most crucial processes of consolidation — particularly those that involve due diligence, valuation and financing, negotiating and executing the agreement, implementing the transaction, and monitoring post-integration performance.
Working closely with top management and boards of directors, we empower key decision-makers through providing informed advise, reliable insights, and actionable strategies that can help them move forward and reach their targets with greater ease and confidence.
Veritas Global has the professional expertise and modern solutions that will not only close the deal, but also seal it with success.