Purchase Mandate

From the buyer's perspective, there are numerous motives for initiating an M&A process. In general, M&A activities are often used in the context of growth strategies. Mergers and acquisitions are used to accelerate the company's development considerably through external acquisitions instead of lengthy organic growth. The buying company can thereby increase its market share and increase its own market power. In this way, the market position can often be secured and competitive pressure reduced. Furthermore, mergers and acquisitions activities can help to open up new markets and serve to expand companies' own geographical presence. For example, it would be conceivable that a company rapidly expand its own sales and service network through the acquisition of several small businesses. A diversification strategy, through additional business areas in connection with a broad product portfolio, can also lead to a targeted risk spreading. Furthermore, tax aspects play not an insignificant role in many cases.

In practice, access to innovative technologies and the associated technical know-how is often a key motive for M&A activities. For the buying company, taking on such resources can be an enormous advantage over long-term internal development. Another important driver for mergers and acquisitions activities is the realization of synergy effects. Cost synergies are often achieved through economies of scale and economies of scope. However, the costs of realizing the synergy potential must be carefully assessed before the mergers and acquisitions process is initiated. At this point, it is easy to misjudge the target company. Difficulties arise during the evaluation with regard to technical equipment and the used production processes. The focus is often on the forward compatibility of the technologies used and the assessment of possible investment backlogs. These factors can lead to a misjudgment of the future potential of the target company. These facts inevitably result in an incorrect assessment of the company's value. We are at your side with our experience and will help you with these problems. Another common problem is the confrontation of two, mostly very different, corporate cultures. The corporate cultures of the buying company and the target company differ often greatly if both companies vary considerably in size. In many cases is the corporate identity of small and medium-sized companies is characterized by flat hierarchies, unbureaucratic cooperation, quick decisions, informal communication, and the variety of tasks of the employees. If the acquiring company is a large company, it can be assumed that its corporate culture will differ significantly from this. In order to be able to control a large company appropriately, its organization is usually much more structured and formalized. Decisions have to go through several levels and the tasks of the employees are usually more specific and much more emphasis is placed on documentation of processes. Here we can act as a buffer between the two parties.