Mergers and Acquisition is the current trend that gradually works as a success command for corporate companies across the world. Business advisory firms in Dubai takes up mergers and acquisition as a complete procedure to restructure business and holds power to add considerable value to business.
Company management focus on this strategic decision, to ensure maximum growth by enhancing productions and operations! With this strategic decision, increase a shareholder value to create more spirited and cost-efficient company.
Most of the big and small enterprises go for mergers and acquisition advisory service in Dubai, to achieve higher reach in the extremely competitive market. While seeking your Mergers & Acquisitions Consultants in UAE, it’s essential to look for the considerable experience and knowledge of the market in the corporate world.
What are the benefits of Mergers and acquisition?
With the help of Mergers and Acquisition Advisory Service in UAE, some of the attractive benefits are,
- It’s considered as less expensive to buy, if your business is underperforming and far away from expected growth.
- Buy existing business rather than expanding it internally.
- Reduced overhead by sharing expenses like miscellaneous budget, purchasing cost, etc.
Why businesses opt for mergers and acquisition?
While merging or combining your business activities, the overall performance tends to increase and the expenses tend to decrease.
With the support of Mergers & Acquisitions Consultants in Dubai, they provide the acquiring company with the prospect to grow their market share without any additional effort. Instead, the acquirers make a mere purchase of competitors’ business for a certain price. This process is usually called as horizontal merger.
While acquiring their suppliers or distributors, the acquirers get rid of many costs that would occur eventually. This happens when the acquirer buys one of its suppliers, this process is called as vertical merger. In vertical merging, acquirer saves on a marginal cost previously charged by the supplier.
What are the factors to be considered in mergers and acquisition?
Business Advisory Firm in Dubai helps in accomplishing mergers and acquisition. In M & A transaction, there are several important factors that investment bankers, stakeholders, and other executives should consider, they are
- Form of consideration
- Tax treatment
- Strategic rationale
- Management integration
What are the different types of mergers and acquisition?
Mergers & Acquisitions Consultants in Dubai work on different types of mergers, Each merger depends on the economic function, purpose of transaction, and finally, the relationship between merging companies.
Merging occurs between companies of the same industry. It’s a business consolidation that occurs between two firms who operate in the same space and often provide the same goods or service.
Horizontal merging is common where competition is higher and the potential gain in market share is much greater than merging firms.
Market extension mergers
Market extension takes place between two companies where they deal with the same product but different markets. This merging makes sure that merging companies get access to huge markets and ensure bigger client base.
Product extension mergers
Product extension takes place between two businesses selling the same product and operating in the same market. This allows companies to get a huge set of customers and assures higher profits.
Merging occurs between two companies producing different goods or services for one specific product. This merging occurs when two or more companies operate at different levels within the industry’s supply chain. Vertical merger is to increase synergies by creating merging firms and create more efficient operating as well!
How A & A associates support mergers and acquisition in UAE?
A & A associates have a mergers and acquisition division that handles all the requests from clients and advice on the proposed activities.
We as a successful business Advisory Firm in Dubai, offer a wide range of merger and acquisition services starting from business valuation, negotiation, and successful completion. We take care of all the requirements in the process with deep knowledge and hands on experience.
We excel as one of the top-rated Mergers & Acquisitions Consultants in UAE, helping our clients and customers to meet their objectives with highest level of satisfaction by identifying their needs and stand out as a perfect partner for merger or acquisition.
With dedicated specialists, make successful deals; cover up all the regulatory restrictions and tax issues. A & A associate is intended to develop integrated and efficient merger and acquisition capabilities!