A merger is better defined as an agreement between two companies that are planning to join together to form a new single company. This time of collaboration turns out two companies into one legal entity.
Mergers and Acquisitions (M&A) are some of the easy-to-implement methods to expand a company, either on international grounds or national grounds. If we talk in simple terms, it may be explained as a process of combining one company with another. There are multiple types of Singapore M&A consulting services; a few of them are discussed below to help you make a convenient decision:
M&A Advisory Singapore – Vertical Merger
Vertical mergers are used by business owners more widely due to their pretty simple procedures. As per the Singapore M&A consulting services, the idea is to combine two different companies that are currently selling similar types of services and goods. The main effort is to combine the supply chain functioning of both organizations in such a manner that either of these organizations can have complete control. Vertical mergers are expected to create synergies which clearly means that both companies will keep on running more efficiently whereas the bigger ones avail benefits from increased supply chain operations and assets after the merger. In most cases, these collaborations do not happen between two competitors; but when they come together, it leads to some profitable cycles with the support of M&A Advisory Singapore.
M&A Advisory Singapore – Horizontal Merger
These types of mergers are slightly different from what is explained in the previous section. In a vertical merger, the involved companies may not be competitors; but in the case of a horizontal merger, the operations involve two or more companies that otherwise act as competitors. The organizations are allowed to work within the existing premises with a similar set of services and goods. The combination of specific operations such as manufacturing may help to decrease complete operating costs. Generally for small businesses, it may appear a reliable way to enter new markets in some other countries or states where they have not expanded their goods and services yet.
M&A Advisory Singapore – Conglomerate Merger
Conglomerate mergers and acquisitions happen between two different organizations that have an almost similar types of unrelated business activities. These types of collaborations appear counterintuitive; however, these mergers are usually more beneficial. They are likely to enhance the market share of the company along with diversification in a stock portfolio, assets, and services. They can also open up new opportunities for product cross-selling. Experts at M&A Advisory Singapore state that there may be two main divisions in the conglomerate merger category: pure and mixed. In the first case, the involved organizations have no similar range of products and services; however, in the second case, the organizations may have few similar types of products.
Other than this, the companies may experience market extension mergers and product extension mergers. The professionals at Singapore M&A consulting services can help you to achieve desired outcomes with mergers and acquisitions.