Mergers, Acquisitions & Restructuring
Companies embark on a merger, acquisition, or restructuring because they believe it will yield business value. Properly recognising and managing the human capital aspects of a transaction is critical to realising this potential value.Deloitte M&A and restructuring professionals draw upon the experience earned in more than a few thousand global engagements to guide companies on how to enable growth, capture value, and bring the business together (or effectively carve the business out). Our subject matter experience encompasses the full range of Human Capital matters throughout the transaction life cycle, including Total Rewards, Organisation & Talent Development, Culture, HR Transformation, and Actuarial Services. These are backed by Deloitte's deep breadth of experience across the disciplines of Consulting, Audit, Tax, and Financial Advisory for a comprehensive approach that is both business-led and people-driven.
Special Situations M&A
Buying and selling stressed and distressed businesses means overcoming a range of complex financial, legal and operational challenges, often under considerable time pressure.
Our Special Situations Mergers and Acquisitions (M&A) team overcome these obstacles by implementing proven rapid fast and highly effective acquisition and disposal rescue funding strategies.
Action of Acquisition
Unfriendly deals, where target companies do not wish to be purchased, are always regarded as acquisitions. Therefore, a purchasing deal is classified as a merger or an acquisition, based on whether the purchase is friendly or hostile and how it is announced. In other words, the difference lies in how the deal is communicated to the target company's board of directors, employees and shareholders.
Details of Acquisitions
Like some merger deals, in acquisitions, a company may buy another company with cash, stock or a combination of the two. And in smaller deals, it is common for one company to acquire all of another company's assets. Company X buys all of Company Y's assets for cash, which means that Company Y will have only cash (and debt, if any). Of course, Company Y becomes merely a shell and will eventually liquidate or enter other areas of business.Another acquisition deal known as a "reverse merger" enables a private company to become publicly-listed in a relatively short time period. Reverse mergers occur when a private company that has strong prospects and is eager to acquire financing buys a publicly-listed shell company, with no legitimate business operations and limited assets. The private company reverses merges into the public company, and together they become an entirely new public corporation with tradeable shares.
Valuation Matters
Both companies involved on either side of an M&A deal will value the target company differently. The seller will obviously value the company at the highest price as possible, while the buyer will attempt to buy it for the lowest possible price. Fortunately, a company can be objectively valued by studying comparable companies in an industry.
