The Transactions We Execute - Merger Transactions
Merger Transactions – Sometimes the owners of two companies are not interested in selling and cashing out but see merit in a combination of their businesses.
The thinking is typically one plus one equals 3+.
On these occasions, a merger transaction may be the correct solution to maximize value for each of the shareholder constituents.
Important elements in these merger transactions are the relative valuations of the enterprises and equity for each company (and thus, post merger ownership) and matters such as duplicative infrastructure and synergies, post merger shareholder rights, post merger management and organizational structure and a variety of other “social” matters.