Following is the list of entities involved in a complex merger and acquisition transaction:
Company secretarial firm:
Incorporation of new company if applicable, approvals of the board of directors, approvals from the shareholders, MCA filings, reporting, statutory payments for various forms/ MCA fees/ stamp duty, allotment of shares, etc.
Chartered accounting firm:
Accounting, taxation, indirect tax in case of an asset sale, income tax in terms of slump sale, income tax for valuation in excess of certified valuation, capital gains tax, dividend distribution tax, international taxation for cross border deals, tax reporting, tax filings, compliances, etc.Legal firms:
Arbitration and litigation if any, representation to NCLT/DRT/Recovery forums in case of a financially distressed company, due diligence of long-term strategy contracts, legal drafting of the investment contract, assessment of the intellectual property
Cost accounting firm:
Accounting by project, by the department, by product, by service, by the geography of the market, etc to understand exactly what is attractive and what is risky about a business, to prepare the financial projections.
Marketing consultancy company:
Surveys, marketing strategy, market analysis, competition analysis, etc
Engineering, technical companies:
Study of project, plant and machinery, production assets, technical DPR, technical appraisal, type and validity of the certifications of the products and processes, quality management, etc
Getting approvals, permits, licenses, etc from government bodies it
For the due diligence of HR, administration, IT, etc support functions, for the integration of the two companies after merger.
They are required to know the macroeconomic risk of sector, industry, product, technology over the investment period.
Merger integration companies:
These companies integrate a different kind of systems in the two companies before the Merger.
Business deal brokers:
Bringing together investors and businesses through personal & corporate contracts.Financial intermediaries:
Companies such as registered investment advisors, investment banks, investor representatives, wealth management companies, investment funds, investment trusts, etc
M&A consultants of the buyer (Buy-side advisors):
If the buyer is a strategic business and not a financial institution, there appoint their merger and acquisition consultants.
M&A consulting company (Apohan or Sell-side advisors):
Our main focus in advising business sellers.
In many simple deals, not all of these type of work is involved. In a simple SME deal, only 20% of work can be expected. But it will be different for every time for every deal. Alternatively, professional due diligence companies can be involved that undertake all statutory work under a single roof.
The work of statutory experts is highly standardized and there are many specialised firms in this work. So long as they are not involved in the formulation of strategy, formulation of a solution to the business problem, the population of deal structure, identification of investor, etc., their charges are very nominal.
The charges for merger and acquisition advisors, both for the business and investor, range from 5 % to 12% of the deal size depending upon the size of the deal, size of the business, the risk profile of the business, the complexity of transaction, probability of success, efforts required to locate a high-risk investor, etc for SME clients.
Our business network has all the above types of professionals, informally connected to us or formally connected to us. We have a database of experts in all these areas. We have signed MOUs with many of them for M&A work. We are expanding our network on daily basis. Our associates are present all over India & abroad. We are also associated with other M&A companies & investment banks to undertake joint mandates.
Except in case of associate M&A consulting firms just like us, investment banks, professional equity investment funds that have all capacities & competencies, Apohan carries out all the challenging, risky strategic work of solution formulation, investor identification & deal closure and the expert professionals are involved in the compliance works.
Apohan uses the networks of all its associates for rapidly finding a matching investor for a business.