Mergers & Acquisitions (M&A) are described as the process of combining two companies for their economic betterment. This process involves business evaluation and is one of the most important aspects of the financial world. We, at ThomasRoss Financial Group, provide business valuation services New Jersey for different procedures like bank financing, mergers & acquisitions, and restructuring & insolvency. 

Why Opt for Our Business Valuation Services New Jersey? 

In terms of mergers and acquisitions, business valuation is incredibly important. When two companies decide to combine their operations together, they need to be able to provide an accurate representation of their business’s economic worth and current market value. Without the valuation, companies will not be able to decide the final market costs of consolidation. 

What is Mergers & Acquisitions? 

Mergers take place when two businesses of about the same size join their operations in order to form a larger company. This happens when both the businesses are in agreement that merging the companies would create a significant surge of sales and in turn, help them attain a higher market value. When two companies merge together, they essentially become equal partners and work together with a mutual understanding. 

Acquisitions take place typically between a larger company and a relatively smaller one. The larger company usually takes over the smaller company by buying a portion of the smaller company. In addition to this, the acquirer may absorb the company by buying their certain assets. 

How Do Mergers & Acquisitions Occur? 

• They occur by exchanging the shares for assets
• They occur by purchasing assets
• They occur by exchanging the shares of shares
• They occur by purchasing common shares 

What are the Different Types of Mergers & Acquisitions? 

Mergers & Acquisitions can take different forms, based on different aspects. 

The two main forms are:

• Merger through absorption
• Merger through consolidation 

The Three Types from the Economic Aspect: 

• Horizontal merger

       This occurs when both companies are in the same industry. 

• Vertical merger

       This occurs when both the companies are at different value chain or production stages.

• Conglomerate merger 

This occurs when both companies belong to two different industries.