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Mergers and Acquisitions: an Introduction Paul Waite
Paul.Waite@aspen-waite.co.uk
Mergers and Acquisitions are (or should be) an incredibly important part of a company’s growth strategy or, indeed, an exit strategy.
In subsequent articles, I will delve deeper into the topic and we will consider subjects such as demergers, reverse takeovers and business valuations.
They are known in the trade as “M&As” and, like many topics in the financial sector, carry an element of mystique.
I like Mergers and Acquisitions! If I could plan my perfect working day, I would have an M&A on the go all the time.
I can remember, for instance, as a relatively recently qualified accountant being asked to prepare a “Heads of Terms” for agreement and thinking this was some amazingly difficult document and, like the perfectionist that I am, being very nervous about how I went about this.
As M&As is a general term used to describe the consolidation of companies or assets through various types of financial transactions including mergers, acquisitions, consolidations and purchases of assets (amongst others).
I have spent much of my life taking what were previously regarded as complex subjects way out of the reach of a client and even noncorporate financed professionals to an accessible level. In this article, I am going to introduce the subject of M&As and outline why they are so important.
A merger is a combination of two firms whereas in an acquisition one buys the other outright. In practice, the distinction can often be blurred, and it is important to look at the detail to consider whether what is portrayed as a merger is, in reality, an acquisition.
In the world of accountancy, M&As are a constant theme.
