Mergers & Acquisitions

LIQUIDATION MERGERS AND ACQUISITIONS

LIQUIDATION MERGERS & ACQUISITIONS

Mergers & Acquisitions

Many companies are seeking mergers and acquisitions considering the increasing interdependence of markets on various goods and services as well as increased foreign competition, it is clear that we live today in a time of great changes. 

That’s why many companies are expanding their geographic reach and growth through the merger and acquisition process.

Companies that choose to grow, usually try:

  • Gain additional market share
  • and access to a new customer base
  • and achieve economic profits
  • and provide returns to their shareholders.

Growth today occurs in many cases through mergers and acquisitions.

Benefits of Mergers & Acquisitions

Mergers and acquisitions have many potential benefits, which mainly focus on:

  • Increase profits and shareholder value through economies of scale resulting from increased market share
  • Expanded use of existing distribution network through the acquisition of new product capabilities
  • Expanding strong production capacity into new markets
  • Product diversification and market risk.

In this way, mergers & acquisitions become an essential tool for corporate development in today’s global market.

Which is characterized by unification, convergence, competition for talent and technology, and the growing importance of these intangible assets such as knowledge, skills, and customer relationships.

How mergers & acquisitions are operated

Either by merger and dissolution of the company and transfer of funds to another company or by merger, which is the dissolution of the two companies and the establishment of a new company to which all the rights and obligations of the two companies are transferred.

Types of merges

There are three types of integration:

  • Horizontal merge.
  • Vertical merge.
  • Diverse integration.

The difference between mergers & acquisitions 

Although mergers & acquisitions are similar in many procedures in terms of the role of intermediaries, asset valuation criteria, and rearrangements for determining the fate of contracts associated with that company and shareholders’ shares, there are two criteria to differentiate between the two processes:

Consideration granted: If the consideration granted is money and not a share, this is an acquisition, but if the consideration is a share of the company, this is a merger.
Company Money: If the company does not expire after another company buys its shares, it will be an acquisition, but if a new company is established, it will be a merger.

Mergers or acquisitions are often a necessary decision in favor of your competitive advantage.
However, this complex and time-consuming process can be more harmful than beneficial without careful support and practical assistance.
We can help with our strong regional presence in the GCC, offices in Dubai and Riyadh, as well as our headquarters in Cairo, Egypt.
We have decades of experience in the market and a variety of customers, making AHG a reliable partner for this delicate process.
Our network will ensure the provision of outstanding consulting services.

AHG Group’s outstanding specialists in Dubai and Cairo can arrange the due diligence reports necessary to objectively assess financial performance and business status before purchasing.

Due diligence is able to identify potential targets, examine them for suitability, and help you increase the necessary funding and improve the financial and tax situation of the newly incorporated company.

Alternatively, you may decide to improve your situation by getting rid of it. Again, we can help – evaluate your assets, identify the right buyer and help negotiate the deal.

We offer support to your operations globally, and assure its compliance to local laws, regulations and standards. Financial information security is an integral part of our practice. Our professional accountants ensure compliance with the five fundamental principles of ethics: Integrity, objectivity, professional competence and due care, confidentiality, and professional behavior.
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