Steps involved in Mergers and Acquisitions Process

Mergers and acquisitions are among the most effective ways to expedite the implementation of a plan to grow rapidly. Companies in all industries have grown at lightning speed, in part because of an aggressive merger and acquisition strategy. The impact of technology and the Internet has only further increased the pace and size of deals. 

An overview of Mergers and Acquisitions

The Merger comes from the word ‘merge’ which means combining two entities. Here, Merger means consolidating two companies to form as one, while Acquisition means one company taken over by other. Mergers and Acquisitions (M&A) are two entirely different terms so let us first understand them individually.

When both the terms are combined, they become one of the most valuable aspects of the corporate finance world. So the basic concept behind M&A is to make industry professionals aware of the fact that when two different companies combine, they create more value as compared to individual stand.

Steps involved in the Mergers and Acquisitions Process

Step1: Build a powerful acquisition strategy

Building a good acquisition strategy helps acquirer with a transparent goal and provides them a better insight on gaining more from the acquisition process. Also, it will help them to chalk out the growth plan through the target.

Step2: Create the Mergers and Acquisitions search criteria

This step is essential to identify potential target companies. The search criteria may include profit margins, geographic location, or customer base.

Step3: Acquisition planning

As an acquirer, you will make contact with several companies meeting your search criteria and will seem to offer good value to them. The prime objective of making contacts is to find out more information about the company and get to know how much acquiescent to Mergers and Acquisitions the target company is.

Step4: Conduct valuation analysis

When the target company is contented with the initial conversation, you will acquire their substantial information which will further help you to gauge the target, both as a business as an individual and as a suitable acquisition target.

Step5: Win the target through negotiations

Once you have selected the target company, your next step would be negotiations. Doing so, will bring the target company to a general agreement for a negotiated merger and will let both the companies provide their mutual consent on working for the long-term working of the Mergers and Acquisitions. 

Step6: Mergers and Acquisitions due diligence

Due diligence is pivotal to confirm the acquirer's assessment of the value of the target company by performing a detailed analysis of every facet of the target company's operation.

Step7: Purchase and sale contracts

The next step is to execute the final contract for sale. Both the parties need to take a final decision on the type of Share purchase agreement, whether it's an asset purchase or share purchase.

Step8: Closing and integration

Eventually, the acquisition deal closes, and management teams of both the parties work together on the process of merging both the firms.

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Functions of Human Resource Outsourcing (HRO)?

HR outsourcing has become a trend these days, big multinational companies are the on the front row to head for HR outsourcing. And seeing them, the small companies have also tightened their belt and started opting for HR Outsourcing.

Now, what is HR Outsourcing?

 The name somewhere suggests an idea itself, about the meaning of HR Outsourcing. HR Outsourcing is a modern technique in which the human resource activities of an organization are being outsourced so that the company can focus on the organization`s core competencies. Like for small companies, it is often a problem to see every corner of the organization and HR functions are usually a hassle task and time-consuming that it will create difficulty in managing other important thrust areas. With the help of the HR outsourcing, this problem can be solved and also enhance effectiveness by focusing on what the organization with their best effort. It will also be a helping hand in improving the flexibility of the organization to the rapidly changing business needs. Usually, businesses that outsource HR are typically small to midsize firms with a number of employees ranging from 25 to 1500. If companies go for partially HR outsourcing, then the company only shares responsibilities with the vendor by sharing a limited amount of information and thus have proper control over the functions. But on the other hand, if the company decides to completely go for HR outsourcing, the vendor has a complete knowledge and takes on all HR responsibilities. for Further Details Click here!.

The following are the functions of the HR outsourcing whether you go for partially or completely -  

• ·         Background Screening
• ·         Payroll Services
• ·         Risk Management
• ·         Temporary Staffing
• ·         Employee Assistance/Counseling
• ·         Health Care Benefits
• ·         Retirement Planning
• ·         Performance Management
• ·         Drug Screening

Accounts Receivable Outsourcing Services for You

In business, cash is king. Cash flow is the lifeblood of any enterprise, and having an efficient system for accounts receivable is essential steadily managing the flow of cash and payments. Often, however, managing accounts receivable takes a toll on a business’s limited resources, taking up time that could instead be invested in growing the business.

We have the expert team to provide accounts receivable services, covering customers all over the globe, including customers in Singapore, Hong Kong, China, European countries. Our comprehensive range of end-to-end solutions, pertaining to the account receivables includes Billings’ preparation and Posting it at suitable portal so that it can be viewed to the customer, Recording and account keeping for revenue, making entry for receivable transactions into the accounting system, preparing periodic statements, making and Issuing credit memos, maintaining subsidiary receivables ledger, process adjustments entry approved by the customer, facilitating the cash received to customer accounts and helping them in resolving short pays, preparing accounts receivable reports, accounts receivable outsourcing services deductions management services.

Well in today’s highly competitive business world, outsourcing accounts receivable services are quite common, for the reason that cash flow connotes to the prime importance in every enterprise. Cash flow management helps in the enhancement of the business' performance as well as it becomes more predictable. In case you outsource the account receivable you are in benefited in many ways your Operating cost minimizes, the involved delinquency minimization, it increases the recoveries and cash flow, It reduces the instances of unapplied credit elimination cases, and definitely, the bad debt reduces.

We have immense experience in preparing the customized account handling program; we work in designed inbound and outbound plan for managing our customer's receivables based on their customer relationship strategy. We have the best accounting software in India. We have with us high-quality improvement programs, run by its experts, which is based on continuous improvement and upgradation model and thereby we keep up with the competition in the market at the national and international level.
Reference is taken from here :-https://enterslice.com/

Accounts Payable Services in India

 Account payable Outsourcing is basically the money that a business or a company owes to its suppliers that features as a liability in the balance sheet of the company.

Accounts payable are the accumulated amount that meets the company’s obligation to pay the creditors and suppliers for the goods and services purchased on the credit instead of giving them the direct money. The company who purchase on credit must have to agree that the payment will be made on specific time-period to avoid any future chaos arises on payment default. Any default in payment may lead to the imposition of penalties or additional interest payments.

Accounts payable are also called the short-term debt payment and also displayed as the liability by the company that owes the payment form others.  It is shown under the “current liability” in the company’s accounting books.

Importance of Accounts Payable in the company

We do follow the accounts payable outsourcing Services concept in our daily life and witness these conditions in our daily routine where accounts payable make it very simple and easy to conduct such things.

For example- the amount we pay in kind of electricity bills, newspaper subscriptions, and post-paid telephone bills are all accounts payable for us as we used the service first and then pay it later. The bills are typically paid at the end of the month and treated as a form of credit extended to us from the service providers and thus make us liable for payment towards the services we have already enjoyed.

For a company, who builds their plans to obtain goods and services from its suppliers and vendors on the concept of credit holds a faith in their accounts that the payment towards the goods or service made on credit will be paid as per the agreement that is made as per the agreement between the two parties. The agreement has a certain clause in it like on the type of payment, the mode of payment the credit time period up to which the payment is to be made and the penalty imposed on the payee in case of any default.

A company dealing in goods and services on credit may receive the payment invoice from the supplier or creditor and show the outstanding amount of accounts payable in its accounts payable sub-ledger account.

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Legal Procedure for Mergers and Acquisitions in India

A Merger is a kind of agreement based on the existing companies in pursuit of joining to form an all-new company. A merger majorly comes into the picture when the company wants to expand the arms as to broaden the circumference while making an entry to a new era in furtherance of earning market share and to polish the object of the company to impress the company’s shareholder. The legal Procedure for Mergers and Acquisitions in India is a hard- wearing task. 

Legal Procedure for Merger and Acquisition in India 

The Following is the summary of the Legal procedure for merger and acquisition in India-

1.   Sanction for Merger

Getting sanction for merger and acquisition is a feet pain job. Two or more company can only amalgamate if they have the permission o do under their memorandum of association. Furthermore, the acquiring company should also have the permission in its MoA to carry such activity of the acquired business.

2.   Notify the Stock Exchange

If the company is listed on stock exchange, then the acquiring company or acquired company both need to share the word with a Stock exchange about the merger and acquisition.

3.   Permission of the Board of  Directors

For merger and acquisition in India, the Board of Director of the company should first approve a draft proposal of the amalgamation and then give the permission to the management of the company to move a further step on the proposal.

4.   Application in the High Court

After getting the approval from the Board of Director, an application for approving the draft proposal of the amalgamation is then moves to High Court. The High Court would conduct a meeting of all shareholders and creditors to discuss and approve the amalgamation of the company. A notice of meeting will be sent to all shareholders at least 21 days in advance.

5.   Shareholder and Creditors’  Meeting

Both the company should hold a separate meeting of their shareholders and creditors for approving the amalgamation scheme. At least 75% of approval of the shareholder and creditors is required to go for merger and acquisition in the meeting.

Therefore, the legal procedure for Mergers and Acquisitions is not complete here, you still require professional consultancy before you go for it. Kindly contact us for any query.

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EPC Project Management in India

EPC Stands for Engineering, Procurement, and Construction. It is a particular form of contracting arrangement that is used by some industries where the EPC contractor is handed over with the responsibilities of design, construction, commissioning, procurement and transferring the project to the end- user or owner.  This form of the contract is covered by the FIDIC Silver Book containing the title words EPC.  

What is Project Management in India?

Engineering, Procurement and Construction Management is a distinct form of contracting arrangement. In an EPCM arrangement, the client selects a contractor who provides the management services for the whole project on behalf of the client.  The EPCM is a service based contract that is embedded in the activities like engineering, procurement, and construction management services. There is a person in the EPC Project management popularly known as the EPCM contractor who coordinates all the design work, procurement, and construction work and also keeps an eye on the project so that it gets completed on time. The EPCM contractor may or may not have the actual site work in his hand. 

The execution phase of industrial projects such as oil and gas projects consists of detailed engineering, procurement, and construction is normally known as EPC and gets start only after the final investment decision by the owners. Companies that are engaged in integrated engineering, procurement, and construction services are the EPC contractors.  Undoubtedly, getting control over the EPC contracts are usually complicated and requires special expertise and knowledge. In brief, the components of EPC business, EPC Project lifecycle, phases, and gates are detailed to give the complete knowledge of the project. Furthermore, the flow of engineering activities and the interconnection between engineering disciplines are discussed and the fundamentals of project procurement management and administration, bidding, logistics and contracting are reviewed.  Into the bargain, the major construction management activities are specified and tools and techniques to monitor and control project performance are introduced.  

The EPC project manager (PM) is aware of the two agreements that are equally important eventually. Whereas, one agreement is with the owner and is codified in a formal legal contract and the other agreement is with the leadership and stockholders of the EPC firm.

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