The field of mergers and acquisitions (M&A) has become quite a prominent element of the modern-day corporate world. The professionals working in this field typically buy, divide, sell, combine and restructure companies, for the purpose of achieving superior efficiency and growth. As underlined by Larry Polhill, mergers and acquisitions analysts are known to study company operations and evaluate financial reports in order to support complex business deals. Larry has worked in the mergers and acquisitions domain for a number of years, and subsequently has a good ideal about the important aspects of this field. He says that any corporate merger or acquisition would essentially have quite a profound effect on the growth prospects, as well as the long-term outlook of any firm.
An acquisition or merger can typically transform the prospects of a company literally overnight. However, there are diverse risks involved in the mergers and acquisitions transactions as well. Hence, it is important to seek assistance from industry professionals like Larry Polhill, before taking any decisions relating to it. Typical mergers and acquisitions analysts are responsible for doing almost all of the preliminary legwork needed to carry out potential deals. These professionals ideally analyze industry prospects by carefully gathering crucial information about the growth and market share possibilities of an organization. These professionals also review financial statements and company fundamentals to reach ideal conclusions.
According to Larry Polhill, there are several reasons why a company might opt to go for an acquisition or merger. Here are a few of those reasons:
- To become bigger: A number of enterprises use the system of acquisition and merger in order to grow in size, and subsequently acquire an edge over their key competitors. In contrast to this system, it might take several decades for a brand to organically increase their size to the double.
- To pre-empt competition: Eradicating competition tends to be one of the biggest motivations behind mergers and acquisitions. They enable companies to acquire a firm having an attractive portfolio of assets before any of their competitors can get their hands on them.
- To create economies of scale: Several companies choose to merge in order to enjoy the best possible advantage of synergies and economies of scale. Synergies take place when any two companies having similar businesses combine, so as to eliminate or consolidate duplicate resources. These resources include research projects, manufacturing facilities, regional offices, etc.
- To achieve maximum domination: Many companies tend to engage in mergers and acquisitions in order to dominate their distinct sector and augment their overall profit prospects.
- For tax purposes: There are many companies who use mergers and acquisitions for diverse tax purposes. However, this factor might be more of an implicit goal rather than an explicit motive.
As Larry Polhill mentions, mergers and acquisitions significantly help people to diversify or to grow their businesses. Over the years, Larry has essentially has helped both mid-sized to large firms to restructure their organizations.
