Mergers

A merger generally refers to two companies merging as equals. In the real world, this is typically quite challenging—more often than not, one company ends up acquiring the other company.

When two companies merge, the valuation exercise is even trickier, because both companies must be valued on a consistent basis, to determine the basis for merger. Where values of companies differ, but the desire is to have an equal 50-50 voting control, a cash payment by one company may be used to create equality in ownership.

Due diligence must typically be performed on both of the merging companies, so that the owners of each company are satisfied they are receiving value from the other company, and that there are no “skeletons in the closet”.

Robbinex assists with all steps of the merger process, through to closing.

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