Modern types of corporate restructuring, including mergers and acquisitions, partial sale of a business, reorganization, and buybacks using debt financing, are presented in it from two perspectives.
How to Make M&A Deals Successful?
It should be noted that a merger is a transaction in the course of which two or more companies are merged into one, which is accompanied by an exchange of shares of the integrated organizations; also, with such a transaction, the composition of the owners does not change.
Takeover transactions, in turn, represent the purchase of a controlling stake, as a result of which the ownership of the organization is transferred. In this case, these transactions are accompanied by a change in the management of the acquired company and a change in its financial strategy.
The main purpose of M&A transactions is to increase the capitalized value of the combined company, which provides the company with a competitive advantage in the global market. The practice of mergers and acquisitions is quite specific. Since the inception of the stock market, its development has been carried out as a corporate control market dominated by strategic investors. It is known that the main actions to reorganize companies are not aimed at increasing efficiency due to capital restructuring.
Top 3 Books You Should Read about M&A
Take a look at 3 the best books on mergers and acquisitions:
- The Art of Mergers and Acquisitions
A well-thought-out and organized merger or acquisition can very well be the basis for the survival and growth of any company. Currently, in the context of the development of market relations, many companies, mainly large ones, consider mergers and acquisitions as a means of improving the material and production sphere, increasing profitability, sustainability, and creating a positive image.
In the modern world economy, on the one hand, the tendencies of global integration are intensifying, which is manifested in the entry of multi-profile companies into new markets, as well as in the concentration of capital and business consolidation, but, on the other hand, there is a deterioration in the operating conditions of companies due to the ongoing financial, economic and political crises, as well as the introduction of economic sanctions.
- No Time Management with M&A
The main difficulties in this book were associated, first of all, with information security: the company has implemented increased requirements for information security, related, inter alia, to compliance with regulatory requirements, in particular, and banking regulation. In this regard, some personnel remained in the company, the specifics of whose work did not allow transferring them to a remote mode. To support such personnel, a responsible administrator is always on duty in the office, ready to provide support “on the spot” at any time. By the way, support from an offline IT specialist is required not only for office staff but also for remote employees – for example, restarting a PC or server.
- Book Mergers, Acquisitions, and Restructuring of Companies
Most companies and their CIOs as a whole successfully passed the “massive shift to remote work” stress test. Or perhaps the first part of a stress test. There are still questions related to ensuring security, fault tolerance, and optimality of processes. In any case, the time has come to calmly assess what happened and plan changes over a longer time horizon, and exchange experiences with colleagues. We hope this review and many of our other initiatives and events will help with this.