M&A merger and acquisition

Merger & Acquisition is the merger of companies or assets owned by them. When two companies merge to form a new company, a merger takes place. After the merger process, a company remains and the assets of this company are obtained from the merged companies. Acquisition also occurs when one company buys a significant percentage of another company’s stock and takes control of it. Unlike a merger, both companies remain in the acquisition process.

Holder Financial Group makes good use of this tool to restructure and strategically manage its customers and is one of the Group’s advisory services in the monetary and financial markets. Global statistics show that organizations are increasingly using mergers and acquisitions to expand capabilities, enter new markets, acquire technological knowledge, and achieve higher levels of performance. A successful merger-acquisition strategy requires consideration of components about the counterparty such as market power and market share, production operations, complementary capabilities, scope of value chain activity, and cultural differences; However, these components are not enough to achieve a successful merger and acquisition strategy, and Holder Financial Group prepares a comprehensive merger and acquisition plan for its clients by carefully examining the conditions of the companies and organizations applying.

Pre-merger and acquisition valuation and management Post-merger and acquisition cultural challenges play an important role in successful mergers and acquisitions, and many failed global examples of mergers and acquisitions have resulted from inadequate valuation or inefficiency in the management of cultural challenges. The business environment of the country and the expansion of the number of multi-business companies on the one hand and the desire of managers to increase the volume of their activities to economic dimensions on the other hand has led to more integration and acquisition as a strategic option. Our approach to management consulting in the field of mergers and acquisitions is a multifaceted approach and includes a combination of strategic management, investment management and management of the relationship between the stakeholders of the merger and acquisition process. Accordingly, Holder Financial Group is ready to take various steps, including evaluating mergers and acquisitions, evaluating and valuing companies, acquiring consulting firms, managing mergers and acquisitions, strategic planning and designing structures after mergers and acquisitions, and acting as intermediaries. Provide a range of management consulting services in negotiations related to decision-making on mergers and acquisitions.

Business cooperation between companies and the combination of their business activities with each other leads to increased efficiency and synergy, as well as reduced costs. Basically, every business tries to integrate with a company that is complementary in terms of strengths and weaknesses.

Diversify or intensify business focus

Companies that seek to diversify their scope of operations tend to merge with companies that operate in unrelated industries in order to reduce the impact of a particular industry performance on their profitability. On the other hand, companies that seek to intensify their focus on current operations are merging with companies that have more influence in key market segments.

This process provides companies that are merged or acquired with the opportunity to grow and increase market share without having to do so themselves, and is commonly known as horizontal mergers, in which the company acquires a smaller company. It strives to gain more market share.

Increase supply chain pricing power

When a company buys its distributor or supplier company, it can reduce its cost level. If the supplier buys, it saves the profit margin that suppliers received for the sale of raw materials to the company, which is also called vertical merger, and if the distributor buys, it can move its products at a lower price and cover distribution costs. Reduce.

Many M&A contracts eliminate future competition and increase market share in selling the company’s products.