Mergers and acquisitions

The merging of companies is usually a good choice in terms of development. However, it is worth preparing thoroughly for the process, as only then can you expect good results. 

When facing a capital transaction, a number of questions arise – and we answer them all. And regardless of a transaction’s character, we provide our Clients with comprehensive care throughout the process. Depending on the specific activity, this can include:

Mergers of business entities

A merger is a consolidation of two or more entities into one company, made by:

  • Transferring the whole property of the merged company to the merging company for stocks or shares the merging company issues to the partners of the merged company (merger by acquisition),
  • Establishing a limited company, to which the assets of all merging companies are transferred for stocks or shares of the new company (merger by incorporation).

When one of the entities merged is a foreign company, this is a transnational merger.

There are various reasons for mergers, usually related to development strategy and the building of a company’s value, the achievement of a synergistic effect or access to new markets and technologies, or even for concessions and licences.

Sale of a company

The sale of a company by its owners is part of disinvestment and profit realisation. Sales can be addressed to a trade or financial investor, as well as individual investors in the form of a private placement or public offering, or an IPO.

Attracting strategic investors

Strategic investors necessary for the implementation of development projects are attracted by the sale of part of a company through the issuing of additional stocks or shares. Similarly to the sale of the whole entity, this can be addressed to a trade or financial investor, as well as individual investors in the form of a private placement or public offering, or an IPO.

Management buyout

Management buyout (MBO) is a situation when the management board acquires a company in order to restructure it and increase its value. This is often connected with a leveraged buyout.

Leveraged buyout

A leveraged buyout (LBO) is an acquisition of a company with the use of borrowed money. In most cases, a bank loan. The share of borrowed money in the purchase of the company can even amount to 90% of the transaction value.