An acquisition is very similar to a merger with the following general exceptions:
- Usually the acquired company is significantly smaller in terms of either asset size or annual revenue (or profit) than the acquirer;
- The purchase may be facilitated through an exchange of shares, or by a purchase of the acquired company using cash or debt, either alone or in combination;
- The acquirer’s business is not fundamentally changed by the acquisition transaction.
Global Edge can advise and assist you in locating a suitable acquiree or acquirer (depending upon your specific objective), negotiating the terms of exchange, structuring the transaction, managing the consolidation process and with financing, if financing is applicable.
It should be noted that companies frequently make multiple acquisitions to eliminate competitors, acquire new products or brands, gain financial strength and negotiating leverage with vendors or suppliers, and/or to simply access Human capital or talent. An acquirer can be a new company comprised of the acquiree company’s management (an MBO or “management buyout), its employees as a collective (through an ESOP or Employee Stock Option/Ownership Plan) or by an outside investor wishing to establish strategic control or to purchase a strategic interest in a company as a portfolio asset. Should you be interested in a pre-acquisition IPO or post-acquisition IPO, Global Edge can get you to the right investment banking firm and negotiate the terms most favorable to company in terms of its valuation. We’ll also serve as your representative and expediter in terms of getting your deal subscribed and fully funded.