CORPORATE ADVISORY
 
Mergers and Acquistion
The Indian economy has been growing with a rapid pace and has been emerging at the top, be it IT, R&D, pharmaceutical, infrastructure, energy, consumer retail, telecom, financial services, media, and hospitality etc. It is second fastest growing economy in the world with GDP touching 9.3 % last year. This growth momentum was supported by the double digit growth of the services sector at 10.6% and industry at 9.7% in the first quarter of 2006-07. Investors, big companies, industrial houses view Indian market in a growing and proliferating phase, whereby returns on capital and the shareholder returns are high. Both the inbound and outbound mergers and acquisitions have increased dramatically. According to Investment bankers, Merger & Acquisition (M&A) deals in India will cross $100 billion this year, which is double last year’s level and quadruple of 2005.

Types of Mergers
From the perception of business organizations, there is a whole host of different mergers. However, from an economist point of view i.e. based on the relationship between the two merging companies, mergers are classified into following:

# Horizontal merger- Two companies that are in direct competition and share the same product lines and markets i.e. it results in the consolidation of firms that are direct rivals. E.g. Exxon and Mobil, Ford and Volvo, Volkswagen and Rolls Royce and Lamborghini

# Vertical merger- A customer and company or a supplier and company i.e. merger of firms that have actual or potential buyer-seller relationship eg. Ford- Bendix, Time Warner-TBS.

# Conglomerate merger- generally a merger between companies which do not have any common business areas or no common relationship of any kind.

We provide one stop solution for
  • Preliminary Planning
  • Drafting of Scheme and Petition
  • Statutory Approvals
  • Post Integration of Merged Entity
 
Takeover and Acquisition
Acquisition: Taking possession of another business. Also called a takeover or buyout. It may be share purchase (the buyer buys the shares of the target company from the shareholders of the target company. The buyer will take on the company with all its assets and liabilities. ) or asset purchase (buyer buys the assets of the target company from the target company).

On an average, in the last four years corporate earnings of companies in India have been increasing by 20-25 percent, contributing to enhanced profitability and healthy balance sheets. For such companies, M&As are an effective strategy to expand their businesses and acquire global footprint.

We provide following Services in this regard
  • Search for prospective Business
  • Initial Negotiation
  • Due Diligences
  • Transfer proceedings
  • Post Integration
 
Capital Market & Stock Exchange
Capital market is a central coordinating and directing mechanism for free and balanced flow of financial resources into the economic system operating in a country. It is an organised market mechanism for effective and efficient transfer of money capital or financial resources from the investing classes to the entrepreneur classes in the private or public sectors of our economy.

The organized capital market can be divided into the following two segments two segments:

(a) Primary Market:
Where new or fresh issues of capital are made by companies. There are three ways in which a company may raise capital-public issue, right issue and private placement. Public issues are widely traded in the stock exchanges. Such issue involves sale of securities to the general public.

(b) Secondary Market:
Where outstanding securities can be resold to others through brokers and intermediaries. Stock exchanges constitute an organised market where securities issued by government, public bodies and joint stock companies are traded.

(ii) Unorganized Capital Market: It consists of indigenous banks in towns, money lenders in rural areas, and lending pawn brokers. Other private leasing and finance companies, investment companies, chit funds form part of this system. They also mobilise savings and channelize them into investments. Though they are required to get themselves registered with the Register of Companies, RBI has no direct control over them

We provide full spectrum services for Primary, Secondary and Unorganised Market such as
  • IPO & FPO Planning
  • Due Dilligence
  • Listing Approvals
  • Negotiations with intermediaries
 
Valuation
Valuation is the process of determining the current worth of an asset or a company; there are many techniques used to determine value. An analyst placing a value on a company looks at the company's management, the composition of its capital structure, the prospect of future earnings and market value of assets. Valuation is required in following shares

  • Transfer of Shares to Foreign Resident.
  • Right Issue of Shares to Foreign Resident.
  • Computation of Capital Gains in Direct Taxes
  • Issue of Shares in kind (other than cash).
  • Merger and Acquisition.
  • Debt restructuring
  • Insolvency and Bankruptcy proceedings
 
     
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