Mergers and Alliances

Mergers, Acquisitions & Alliances

For most firms, the basic objective of a Merger or acquisition is to increase profit and to achieve strategic benefits. Acquiring or merging with a company having a valuable technology, process, capability, market share often provides a faster pay-off than possible from a new in-house initiative, and with more predictable results. Selecting the best target company for strategic business growth from several is an iterative process.

Penta consulting’s M& A consulting team will help you successfully execute your business growth vision.For certain engagements involving technical operational issues or unique industry dynamics, a specialized consultant and/or retired industry executive may be included to offer key insights. Working under NDAs, our team functions as your intermediary, Our consultants seek to show our clients a complete view of the entire assignment, not just the attractive aspects.

Although the structure and thrust of each engagement is unique, for assignments in mergers & acquisitions our consultants typically focus on answering the following kinds of questions:

  • How is the candidate positioned relative to its competitors? (e.g., pricing strategies, capabilities, market positioning by segment).
  • How well is the candidate executing or peforming in the marketplace? (e.g., customer service, quality, product innovation).
  • What’s the threat from new competitors and/or substitute products/services?
  • How large are the potential synergies? What factors will impact the ability to realize these synergies?
  • How sound is the candidate’s strategy, and how realistic are management’s business plan & projections?

Penta consulting’s 5 step M & A process:

  • Project Scoping: To scope out the project, we meet with the company to understand their present scenario, growth plans, business strategy and prospective expansion plan. We then engage with the client to determine key business, financial, strategic and technical issues, the context and other business related aspects .
  • Prospect identification and shortlisting: Having undestood the company’s business strategy and prospective expansion plans, Penta Consulting’s team then visits, researches and analyzes each candidate company, producing a thorough, thoughtful and relevant evaluation of each organization. Throughout the process, the privacy and security of all parties is scrupulously maintained.
  • Research and analysis: Our consultants’ reported aspects include business, intellectual property, financial, legal, technology, product, policy and staffing issues, benefits and liabilities, plus our observations and recommendations. Our experienced consultants then give our clients sound decision-making knowledge to evaluate the suitability of a particular merger or acquisition within the framework of their organization’s needs and objectives. Using proven methodologies to rigorously analyze company sales & customer data, relevant financial reports, strategic plans and other internal data, We present to the client detailed SWOT analysis report for the prospective candidate.
  • Due Dilligence: The most important aspect of a Merger or Acquisition is financial solvency and legal and financial due dilligence. Our M & A examine, not just the financials, but the strategic logic of the deal within a client’s big picture. Are the apparent synergies real? Can a client realize the value of the transaction? And following our review, investigation and analysis of one or more candidate companies, our due diligence report might suggest that it’s in a client’s best interest consider an alliance as a lower-risk alternative, or even to walk away from the transaction.
  • Negotiation & Closing: Penta’s M&A consultants assists in the negotiation process. The intentions and interests of the participants have to be carefully and openly weighed. Only the successful mastering of this process will bring the right partners together and insure a successful outcome and a prosperous future. The conversion of negotiation results into binding contractual structures is often another factor capable of sinking a transaction. Our Consultants offer a complete service that ensures the smooth navigation around potential pitfalls, facilitating the achievement of the goals of the company and the owners in the agreements for the closing.