Mergers of two companies are often the outcome when the parties lack the financial strength to acquire the other party or when there is a good reason why both parties should have ownership in the joint company (e.g. when both owners want to capitalize on the value of the merged entity or to incentivize the respective management teams).
A successful merger is always based on the rationale that the combined company is better than the two individual companies. It is also based on mutual trust and shared visions. Once these fundamental factors are established, a relative valuation has to be made and agreed upon.
Often the parties’ views of the respective company’s outlook and value differ. This is usually why mergers fail. An advisor can present the company in an objective manner and can facilitate the negotiations taking a more professional and less emotional approach.
Jarl Securities has the relevant experience of leading mergers and our pragmatic approach increases the chances of success.
When we can support you
You are considering to merge your business with another business
You need to defend the valuation of your company in a merger
You need to determine the merged companies’ relative value
You need external funding to bridge the cost of merging the companies
How we can add value
Analysis of synergies and strategic rationale
Prepare relevant information for all stake holders in order to ensure relevant valuation and commercial terms
Negotiate and give commercial advice on all legal documentation