Mergers and Acquisitions

In an evolving economic landscape a number of factors in the lifecycle of a business prompt owners to consider undertaking M & A activity, the principle motives of which are growth and profitability. Growth by acquiring new clients and/or access to new markets, or enhanced profitability by aquiring new expertise and synergies in the business.

A business owner would usually require comprehensive assistance and advice on valuations, fit, optimal change management processes and integration of the new work force with different work culture and ethics, in order for the merger or acquisition to go ahead as smoothly as possible.

Mergers and acquisitions are not a simple transaction compared to say the acquisition of any other asset. Despite comprehensive due diligence procedures being performed in advance, any measure of ‘right fit’ will only become apparent after the M & A has taken place – the risks are very real.

An M & A needs to be managed by the board working hand in hand with their advisors. A balanced consensus on valuation methodologies, industry multipliers and future benefits must be achieved where neither party feels that their business is being under-valued or where the price to pay is considered too high. A clear strategic plan must be devised so that the integration of the units acquired or merged can take place as seamlessly as possible. Appraisals should be undertaken on key employees with a clear path mapped out to ensure that they will fit within the enlarged organisation and where they will not create material conflict with existing staff. Different corporate cultures and work ethics need to be integrated and managed appropriately ensuring that positive values are retained.

How we do it

ARQ can provide expert and independent business valuations, financial as well as individual due diligence and business plans following the M & A. Clients are provided with comprehensive information on which to base any strategic decisions. Our multi-disciplinary structure allows us to assemble a dedicated team that works closely with our clients in assessing and evaluating any target for M & A. Best and worst case scenarios are considered and possible alternatives presented following extensive due diligence procedures. Subsequent phases can also include independent legal and audit advice if required.

Get in Touch

How can we help you?

    Key Contact

    David Borg

    Partner – Tax & Advisory
    A Chartered Accountant and co-founding partner at ARQ. He is a Fellow of the Association of Chartered Certified Accountants (UK) and the Malta Institute of Accountants. He is also a Member of the Malta Institute of Taxation and the Malta Institute of Financial Services Practitioners.