We can say that a merger is either: a) the combination of two companies into one new entity, or b) one company absorbing the other. In other words, two or more companies are consolidated into one company.

An acquisition occurs when one entity gains control over another entity. An acquisition is typically achieved by acquiring a majority of the voting stock held by investors.

We can divide a merger into three major types:

  1. Horizontal – two businesses in the same industry combine into one
  2. Vertical – two businesses in the same value chain or supply chain merge
  3. Conglomerate – two or more unrelated entities are combined into one entity

Acquisition can be divided into four major categories:

  1. Vertical acquisition
  2. Horizontal acquisition
  3. Conglomerate acquisition
  4. Market extension acquisition

We can take examples from the real world of a successful merger or acquisition (M&A).

  1. Exxon and Mobil
  2. Disney and Pixar
  3. Sirius and XM Radio
  4. Verizon and Vodafone
  5. Heinz and Kraft
  6. Pfizer and Warner-Lambert
  7. AT&T and Time Warner
  8. Google an Android

In terms of business, Merger & Acquisition Consulting are smart strategies for planned growth and diversified profits. The consolidation of companies results in the savings of duplicated manpower, improved access to markets, and more efficient implementation of technology. It is good if the company wishes to develop new market channels, gain new competencies & resources, and further increase its access to growth capital.

When structuring a Merger & Acquisition Advisory, the companies should seek advice regarding which structure is best suited for the strategic and financial goals of the parties.  A better structure is one that achieves both short-term and long-term goals including value enhancement of the companies.

Mergers And Acquisitions Companies (also known as takeovers) are not the same.  A merger happens with the mutual decision of two parties or organizations to combine having the common goal of earning more profit as a single entity.  Here, the authority of decision-making is mutually agreed upon prior to a merger.  On the contrary, an acquisition most frequently sees decision-making rights retained by the buying entity.

It is significant for companies to analyze their needs, internal resources, and long-term goals before searching for an ideal M&A Consulting Firm.  Executives should stay focused on their core business while outsourcing specialized buyer or Transaction Advisory Services.  The perfect advisor provides timely advice and peace of mind the transaction is valued, structured, negotiated, financed, and documented correctly.   C.V. Lemmon & Co. has a 38-year track record of successful closings and satisfied clients, who have trusted C.V. Lemmon to manage the entire M&A Strategy Services.

Getting a Merger & Acquisition Advisory in Dallas is beneficial for business owners because they frequently don’t possess the necessary experience and skillsets.  Going it alone could cause a waste of time and the potential loss of a good deal.  Sellers and buyers wonder about possibilities – alternatives they may not even know exist – and wish they had an expert on their side to answer questions and bounce ideas.  Historically, sellers and buyers later regret going it alone.  They never know how much they lost – or could have gained.