VB Sharma Professional Corporation . Chartered Professional Accountants

Mergers and Acquisitions

One of the hardest decisions for you, the business owner, is whether you wish to pursue a merger with another company or purchase an existing company

We will:

  • Evaluate Buy-Sell agreements
  • Review shareholder agreements and/or shareholder disputes
  • Provide transaction support, including purchase price allocation
  • Initiate impairment testing of intangible assets and goodwil
  • Assess employee share purchase and option plans (ESOPS)
  • Consider income tax issues - estate freezes, corporate reorganizations and compliance
  • Conduct transfer pricing studies
  • Investigate insurance claims

A merger or an acquisition can provide you with these benefits:

  • Increased market share by eliminating your competition
  • Lower operating and/or products costs
  • Increased cash-flow
  • Increased revenue by cross-selling a different product line or service
  • Greater tax gains
  • Industry know how and positioning
  • Financial leverage
  • Improved profitability and EPS
  • Greater balance on your professional and personal life
  • Enter new markets
  • Introduce new products through research and development
  • Achieve administrative benefits

Or if you prefer a less permanent arrangement, consider establishing a Joint Venture or a Strategic Alliance relationship with another company or business owner.

Benefits of a Joint Venture

  • Share your resources such as advertising and marketing, therefore you increase your profits and decreasing your losses
  • Minimize risk while maximizing your financial leverage

Benefits of a Strategic Alliance

  • Your partnership with another business allows you to combine your efforts
  • Example: receiving a better price for goods by combining your orders together
  • Seeking business together with both of you providing a part of a particular product
  • You can form alliances based upon marketing, sales or distribution, production, design collaboration, technology licensing, and research and development efforts.
  • No commitment to expensive expansions beyond your core business model.