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Mergers and acquisitions are one of the most significant corporate changes that an organization can undergo. The potential risks and transformational effects of a successful acquisition could keep executives on edge. Expert advice is required to bring businesses together through mergers and divestitures or separate them by separating and spinning off.

M&A services include screening due diligence, providing advice on price valuations to be sure you don’t spend too much, and much more. The top management consulting and advisory firms employ teams that assist clients in identifying the best opportunities and create an acquisition strategy.

There are various types of M&A deals which range from strategic to opportunities. A “targeted acquisition” is typically done by a well-established, large business with a corporate development (corp dev) team that is searching for promising small companies to aid their growth strategies. This is the kind of M&A most often seen in tech start-ups, which isn’t easy to grow.

Horizontal M&A is a type of M&A that involves businesses in the same industry that can leverage synergies. eBay and PayPal are two examples of mergers where both companies joined their networks of customers and cut operational costs. Vertical M&A occurs when a company acquires another company that offers complementary services or products. The aim is to increase market share and expand revenue streams by merging strengths.

A true merger is the combination of two distinct businesses into one legal entity. The result is a company that has exactly the same name and operation as before. An alternative to a true merger data room M&A is to use a stock sale, where the buyer simply purchases all outstanding shares of the target company directly from the shareholders. This is less complex than a full merger however, it could violate antiassignment clauses in existing contracts. It also requires a third parties’ consent.