| Mergers and acquisitions |
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Value Creation assumes a guiding role. Selling: to whom?Too small, no good successor, or any other reason. For whom does the company have value and who recognises the highest value? A national buyer, an international partnership, an IPO, or selling back to the management?
Buying: what exactly?Increasing market share or entering new markets. What will add the highest values from the buyer's point of view. Forward or backward integration, a competitor is selling his company or are new developments demanding money and attention?
Financing: which sources ?New, replacement or additional financing for a take-over, buying out the shareholder(s), investments or cutting back current interest charges. What will be the effect on value? Which sources must be tapped and how? Who can offer the best opportunity - banks, venture capital companies or informal investors? |
