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Mergers and acquisitions are some of the biggest corporate transformations a business could undertake. The potential risks and transformational effects of a data room M&A successful deal can keep executives awake. Expert advice is required to bring companies together through mergers and divestitures or separate them through spin off.

M&A services include screening due diligence, providing advice on the valuation of price to make sure you don’t overpay and more. Leading management consulting and advisory firms have teams of experts who assist clients in identifying the best opportunities and develop an acquisition strategy.

There are many different kinds of M&A deals, ranging from strategic to the opportunistic. A « targeted purchase » is typically executed by a well-established company with a corporate development team (corp dev). The team is responsible for searching for promising small companies to aid in its growth strategy. This type of M&A is common in tech start ups that can be hard to grow.

Horizontal M&A involves businesses that are in the same industry and are able to leverage synergies. Examples include the merger of PayPal and eBay in which the two companies merged their customer networks and cut operational costs. Vertical M&A is when a company buys another company that provides complementary products or services. Combining strengths can be a way to increase revenues and market share.

A real merger is the fusion of two separate businesses into a single legal entity. The result is a company with identical name and operation as it was before. Stock sales are a possible alternative to a merger, where the buyer buys all outstanding shares directly from the target company’s shareholders. This is less complicated than a full-blown merge, however, it could violate antiassignment clauses in existing contracts. It also requires a third party approval.