Tag: Control


Transactions

November 16, 2015

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Their job – moving system, which is constantly undergoing change. And the positive and negative. Stagnation can ruin a business. There are many different operations with the business. Consider some of them.

Due diligence (due diligence) – this is a record of all of the risks, checking the real financial status of the company, estimate the market price of the shares for investment purposes. Conducting due diligence necessary in the framework of: the acquisition of finished business; business sales; the opening of its business abroad, mergers, assess the solvency of the counterparty; report the effectiveness of its subsidiaries, to report the investor or partner. The process of due diligence requests participation of many experts: tax consultants, auditors, analysts, appraisers, lawyers, and so on. Conducting due diligence standard consists of three steps: assessment of tax risks, legal risks, financial evaluation risks. Another procedure to companies is the process of mergers and acquisitions. The merger – it's every constituency, in which there is a new economic system, with pre-existing stop exist.

Absorption – is to get ownership of one company over another by buying a controlling stake. The number of companies remains the same. The process of mergers and acquisitions involves different levels: multinational – involving companies from different countries and national – within a single state. On the other typologies of mergers and acquisitions are divided into vertical, conglomerate, horizontal. Horizontal imply a relationship between the organizations of the same industry, vertical – between the different branches of organizations, but linked the finished product, conglomerate – the process of mergers and acquisitions of firms disjoint. For mergers and acquisitions should be assessed in mergers and acquisitions. Distinguish assessment in hostile and friendly process. With friendly mergers and acquisitions buyer receives an independent assessment of the acquired case, while the other side reduces the risks of loss, takes data on the value of the transaction. When hostile mergers and acquisitions of property assessment can save assets and control over the enterprise. Conducting due diligence and mergers and acquisitions – this multi-level processes that require professional look and support.