A merger and acquisition transaction has a lot of stakeholders. Many of these functions are carried out by a single company or a firm. Many time the specialised activities are carried out by separate entities. A merger and acquisition Consulting company naturally requires to have a wide network of M&A accounting firms, taxation firms, legal firms, valuation firms, etc. The directors of Apohan have worked in merger and acquisition field for for many years in India. They have a wide network of many professionals in this field.See:
Apohan is associated with a wide variety of investors. It has a wide network of connections with cash rich companies which act as strategic investors who are looking for 100% buyout or partial stake in companies with strategic alignment.
We have also a large network of private individual investors, high net worth individuals, NRIs, etc. Apohan has a systematically classified database of individual investors, institutional investors, investment funds, etc with the details of their investment ticket size, sector preference, location preference, risk appetite, etc.
Apohan is connected with large number of foreign investors who are looking forward foreign direct business investment in India. Apohan is well connected with the foreign embassies, joint Chambers of Commerce of India and foreign countries, foreign investor forums, industry associations abroad, etc.
Apohan also has a large network of wealth managers, private equity funds, venture capital funds, investment banks, family offices, etc. which act as financial intermediaries in the merger and acquisition transactions.
Merger and acquisition transactions come in a wide variety. Depending upon the size of a deal and the complexity of a deal, they require involvement of various types of merger and acquisition professionals. Apohan has a network of many such merger and acquisition professionals, freelancers, partnership firms, limited liability companies, etc. Following are the types of merger and acquisition professionals. Their association not only helps in getting expert’s advice in structuring of the deals but also connecting to the investors.Company secretarial firm:
Incorporation of new company if applicable, approvals of 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 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 financially distressed company, due diligence of long-term strategy contracts, legal drafting off the investment contract, assessment of intellectual property
Accounting by project, by department, by product, by service, by geography of 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
They are required to know the macroeconomic risk of sector, industry, product, technology over the investment period.
Technical, engineering work:
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.
Bringing together investors and businessesSee:
When is registered with around 10-12 national and international online M&A deal platforms for speedy investor discovery. This platforms connect the the buyers and sellers of the businesses. They have many criteria to avoid non-serious parties. They have also multiple filtering criteria for approaching the right kind of buyer or seller.
Apohan participates in most of the merger and acquisition related events, conferences, exhibitions, meets, webinars, etc. It is an active member of many social media groups on mergers and acquisitions. Apohan is a registered member of many merger and acquisition forums. Apohan has created its own social media presence and groups for the interested buyers and sellers of the businesses participate. Apohan is soon going to start its own merger and acquisition industry events.
Apohan’s Telegram group link invite
Apohan is a member of Maratha Chamber of Commerce (MCCIA). It is in the process of acquiring membership of FICCI, CII, other regional Chambers, international Chambers of Commerce, joint Chambers of Commerce of Indian and foreign industries. This enables us to find strategic investors for SMEs.
Apohan does not enter into an exclusive arrangement with any investor or any merger acquisition professional Consulting company as a matter of policy. We have adopted this policy basically to provide a wide range of choice to the SME business sellers then being turned down because they don’t shoot the target profile of a particular investment house. Also, association with more than select few investors creates a competition for acquisition of the state and the business gets a better valuation.
We make the arrangement exclusive once the investor expresses an its in principle approval through a letter of interest.
One of the main reasons why merger and acquisition activity in the small and medium businesses unsuccessful is formation of a of long chain of brokers, consultants, financial intermediaries, etc. The small and medium business mistakes brokers as merger and acquisition consultants. They don’t possess the knowledge and resources to carry out the scope of work in M&A process. Hence, the brokers approach a merger and acquisition professionals through a sub-contract. The merger and acquisition professionals are experts in only one or two compliance areas of transaction search at taxation or accounting. Hence, these merger and acquisition professionals in turn approach the investment banks to find an investor and to put forth the opportunity. This creates a long sale side chain of parties interested in the consulting fees or brokerage.In the beginning, none of these mandates are exclusive as there is no commitment or awareness of the name of the party. Hence, such multiple chains of brokers, compliance professionals, M&A consultants, investment banks on sell side are formed.
Similarly, on the buy side, the ultimate investor engages their investment banks who in turn get in touch with many merger and acquisition professionals to identify and locate the target company that matches the target profile sought by the investor. Any of these parties may engage brokers to speed up the search of the target.
As if to increase the complexity further, typically, these mandates are not exclusive at the initial stages. This creates a very complex set of anonymous profile communications, non-disclosure agreements, scope & fees sharing agreements between the intermediate parties, etc. This is one of the major reasons why the merger and acquisition deals take a long time, and not the length of Corporate process, documentation, due diligence or merger integration. Moreover, the company stands chance to lose its opportunity to get equity funding only because the intermediate parties could not agree. This disagreement may not be even known to the main client company. Involvement of more number of parties increases the transaction cost it increases the dissatisfaction among those consultants who work more for a lesser share of fees. This may result in poor quality of work.
This is why, Apohan takes a direct mandate or a joint mandate with the an investment bank from the client. Apohan never works on pure brokerage basis for “introduction of a party” or “introduction of an opportunity”. It engages with the brokers and other M&A professionals through independent contracts, if needed, on fixed, non-negotiable finder fees. We advise only on buy side or on sale side to avoid the conflict of interest.