Learn more about Mergers and Acquisitions.

1. MERGERS AND
ACQUISITIONS
EXPLAINED
BY SEBASTIAN AMIEVA

2. What is M&A BASICALLY?
In corporate finance, mergers and acquisitions are
transactions in which the ownership of companies, other
business organizations, or their operating units are
transferred or consolidated with other entities.

3. Asset Sales VS Stock Sales
An asset sale is the purchase of individual assets and
liabilities, whereas a stock sale is the purchase of the
owner's shares of a corporation. While there are many
considerations when negotiating the type of transaction, tax
implications and potential liabilities are the primary concerns.

4. Who's Involved in the M&A Process?
1. PURCHASER
2. SELLER
3. TARGET
4. TARGET BOARD OF DIRECTORS
5. M&A LAWYERS
6. INVESTMENT BANKERS
7. Others. A number of other parties may play a role in an
M&A transaction.

5. Business Appraisers, Accountants
& Consultants
BUSINESS VALUATION: IN SOME COUNTRIES YOU WILL
NEED TO HIRE A CERTIFIED BUSINESS BROKER FOR
APPRAISALS OR JUST GET A ¨BROKER OPINION OF VALUE¨.
ACCOUNTANTS: THEY HAVE A VERY IMPORTANT ROLE FOR
DUE DILIGENCE PROCESS.
CONSULTANTS: SOMETIME IS GREAT TO HAVE A TECHNICAL
PERSON TO GET DONE A MARKET REPORT.

6. THE STRUCTURE OF MERGERS
● Horizontal merger: Two companies that are in direct competition and
share the same product lines and markets.
● Vertical merger: A customer and company or a supplier and company.
Think of a cone supplier merging with an ice cream maker.
● Congeneric mergers: Two businesses that serve the same consumer
base in different ways, such as a TV manufacturer and a cable
company.
● Market-extension merger: Two companies that sell the same
products in different markets.
● Product-extension merger: Two companies selling different but
related products in the same market.
● Conglomeration: Two companies that have no common business
areas.

7. How Long Does the M&A Process
Take?
The length of the M&A process can take anywhere from six
months to several years, depending on the complexity of the
deal. While it can be helpful to draft a timeline and target a
closing date for tracking purposes, understand that delays
are inevitable, so build in time for change.

8. WE HOPE YOU ENJOYED THIS INTRODUCTION TO M&A
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