Bringing companies with each other by means of merging and also acquisitions or sculpting them out via splitting ups and also divestitures is gaining pace in recent years. Technology integration, higher revenue, regional expansion, higher growth, diversification, tax benefits, etc. are the main reasons for the mergers. As a leading and experienced Business Advisory firm in Dubai, mergers and acquisition is one of our core expertise.
What are The benefits of Mergers & Acquisitions?
There are many benefits of Mergers & acquisitions, some of which is listed below:
- Often less expensive to buy than to build.
- If your business is underperforming and not meeting the expected growth it may be less expensive to buy an existing business rather than expanding it internally.
- Reduction in costs and overheads by sharing expenses, miscellaneous budgets, purchasing costs, etc.
Reasons for Mergers & Acquisitions
There are 3 reasons to it:
- When you merge or combine your business activities the overall performance efficiency tends to increase and onboard expenses tend to decline.
- Mergers can provide the acquiring company with an opportunity or prospect to grow their market share without any substantial effort. Instead, the acquirers merely make a purchase of a competitor's business for a certain price which is usually referred to as a horizontal merger.
- When one is thinking of acquiring their suppliers or distributors, the acquirer and can get rid of many costs that would take place. In particular, if an acquirer is buying one of its suppliers it is known as a vertical merger (explained below) where an acquirer saves on the marginal costs that the supplier used to previously charge.
How can the SPK team support Mergers & Acquisitions in UAE?
Professionals at SPK team possess in-depth experience in different industries that can support you to create value and mitigate the challenges over the course of the M&A Processes. We, Emirates Chartered Accountants Group can support you to:
- Identifying and developing Strategies for integration Structuring M&A Deals
- Deal Negotiation
- Overseeing the M&A Process
- Drafting & Vetting of Legal matters o Deal execution & Closure
Mergers & Acquisitions services from SPK Auditors
SPK Auditors can provide a range of services to support mergers and acquisitions (M&A) in the United Arab Emirates (UAE). These services can include:
- Due Diligence: SPK Auditors can perform due diligence on the target company to assess its financial, operational, and legal standing. This can help the acquiring company make an informed decision about the potential acquisition and negotiate the terms of the transaction.
- Financial and Tax Planning: SPK Auditors can provide financial and tax planning advice to ensure that the transaction is structured in a way that is tax-efficient and maximizes the financial benefits for the acquiring company.
- Financial Modeling: SPK Auditors can develop financial models to assess the potential financial impact of the M&A transaction, including projections of future revenue, expenses, and cash flow.
- Integration Planning: SPK Auditors can provide support in planning and executing the integration of the target company into the acquiring company. This can include support with financial and operational integration, as well as organizational structure and human resources planning.
- Valuation: SPK Auditors can provide valuation services to determine the fair market value of the target company, which can be used to negotiate the purchase price.
- Legal Support: SPK Auditors can provide legal support to ensure that the M&A transactions comply with local regulations and laws in the UAE.
By working with SPK Auditors, businesses can benefit from a team of experienced professionals who can provide the support and expertise needed to successfully navigate the M&A process in the UAE.