Mergers & Acquisitions

Mergers and Acquisitions (M&A) activities are strategic operations that involve the fusion or acquisition of two or more companies. These operations aim to increase the value of a company by diversifying activities into new markets, strengthening market share, and/or expanding geographically.

Redstone Consulting Nexus ltd, thanks to its network of contacts and partners, is able to provide targeted consulting services for both Buy-Side and Sell-Side activities.

Common sectors for M&A operations include:

– Hi-tech & IT: operations in the technology and Information Technology sectors

– Food & Beverage: operations in the food and beverage sectors

– Consumer: operations in the consumer sector

– Manufacturing & Automotive: operations in the manufacturing and automotive sectors

– Fashion: operations in the fashion sector

– Energy: operations in the energy sector

– Financial Services: operations in the financial services sector

– Industrial: operations in the industrial sector

These sectors are often interested in M&A operations for various reasons, including reducing competition, reducing costs and expenses through economies of scale and shared budgets, and creating new opportunities for growth and development.

Stages of a M&A Process

Targeting: Selecting the target company based on criteria such as size, profitability, business model, market position, and future potential.

Preliminary Contacts: Initial requests and provision of preliminary information from the target company, upon request from the other party.

Preparatory Activities: The target company must have an Information Memorandum (InfoMemo) including a Business Plan and a valuation, at least in the form of a range of values, of its own company.

Non-Binding Offers (NBO): A non-binding offer that establishes the main terms of agreement between the seller and buyer, without committing either party to the continuation or conclusion of the operation.

Letter of Intent (LOI): The Letter of Intent confirms the content of the non-binding offer and is a sort of “contract” that confirms the intention to proceed with the operation.

Due Diligence: In-depth analysis of the involved companies to evaluate their financial, operational, and legal situation.

Negotiation: Negotiation between the parties to define the terms of the operation.

Signing of the Acquisition or Sale Agreement: Signing the contract that regulates the M&A operation.

Financing: Arranging the necessary financing for the operation.

Closing: Conclusion of the operation, which may include the transfer of ownership and the integration of the activities of the involved companies.