MERGERS AND ACQUISITIONS
Small and Medium-sized Enterprises (PYMES) and Family Businesses.
MERGERS AND ACQUISITIONS
Specialized investment bank for SMEs and family businesses
We help you create value
Avacum Mergers and Acquisitions offers a range of services that start before negotiations and continue until the deal is closed.
Process
Our service hiring process is simple and efficient. Please find attached an explanatory brochure outlining the steps to follow.
MERGERS AND ACQUISITIONS
On-site consulting
A product specifically designed for SMEs, family businesses, and entrepreneurs.
The purchase of one company by another (acquisition) or the union of two companies, resulting in a larger entity (merger), is one of the most common ways to gain size and competitiveness today.
Generally, these types of business operations are driven by the identification of a threat or opportunity in the market.
Our services include:
Management of mergers and acquisitions projects.
Each project is tailored to your needs, complementing existing resources or managing the entire project.
- Opportunity or partner selection.
- Valuation of options.
- Support in negotiation processes.
- Tax requirements.
- Legal requirements.
Due Diligence:
Work plan to guide buyers and sellers through the process.
Post-merger or acquisition integration:
The integration of work teams after the stress of the merger or acquisition is a key element.
Quotation of our services:
We offer competitive options in quality and price, according to the scope of each operation. We prepare a technical and economic proposal.
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Preguntas frecuentes…
The COVID-19 pandemic has accelerated the existing trend towards implementing a higher percentage of Avacum online financial services, or what we can determine as a mixed economy or digital transformation.
In general, online financial services can be a convenient and cost-effective option for those looking to manage their finances efficiently and effectively. However, it is important to carefully research and compare options before choosing an online financial services provider. Undoubtedly, the market is moving towards this digital transformation, but now we can ask about its advantages or benefits.
What are the advantages and benefits of Avacum online financial services?
- The speed of service is one of the most important characteristics.
- Greater efficiency in terms of work. Although online services require more planning, it ultimately translates into better work efficiency.
- Reduced time and expenses for travel.
- Regarding communication, online services do not necessarily compromise it. There are communication tools, such as video conferencing, that allow for high-quality communication.
- Online services produce innovative effects, increasing productivity.
Avacum offers online corporate finance services.
Regarding corporate finance, many shareholders and entrepreneurs consider management as a cost to the company and even part of the strategy is to decrease such cost to the minimum level.
Corporate finance is essential for the success of a company, as it provides information and tools for proper financial management of the company.
Corporate finance helps the company in several ways, including:
- Investment decision-making: Corporate finance helps the company make informed decisions about how to invest available financial resources. By evaluating investment projects and calculating net present value (NPV) and internal rate of return (IRR), corporate finance can help the company determine if a project is viable and profitable.
- Risk management: Corporate finance also helps the company manage financial risks by identifying and assessing potential financial risks and developing strategies to mitigate them.
- Financing: Corporate finance also helps the company obtain financing for its projects and operations. By evaluating financing options and negotiating with lenders and shareholders, corporate finance can help the company obtain the capital it needs to grow and thrive.
In summary, corporate finance is essential in helping the company make informed financial decisions and manage financial risks, which can improve the profitability and long-term success of the company.
The objectives of a company are determined by its shareholders. When analyzing the universe of large and small companies, we can find a myriad of objectives, such as:
- • increasing sales
- leading a certain sector
- increasing profitability
- Creating more jobs
- Having social recognition, etc
From our perspective as corporate finance advisors, the determination of objectives is fundamental, and almost all of them lead to a final situation, which is the creation of sustainable value for the shareholder.
A company without objectives is a company that cannot go anywhere.
Referring to the story of Alice in Wonderland, when the rabbit asked Lucy, "Where do you want to go?" and Alice said she didn't know, to which the rabbit replied, "If you don't know where you want to go, any path will do."
Those who don't know where they want to go can end up anywhere.
This advice to companies is always the same... Before any action, determine what your objectives are.
Corporate finance tools: We are often asked, "What is the most important thing in a company?" and even in all business schools, the discussion centers around "What are the keys to a company's success?" The answer is very simple, there is no magic formula or miraculous key that guarantees a company's success.
The most important tools we have for managing a company are the proper use of information and its allocation for decision making. Information and decisions are the keys to managing a company. Applying suitable and current methodologies to obtain indicators that clarify the path to achieve objectives.
In corporate finance, there are various tools that can be used for investment decisions, financing, and risk management. Below are some of the most common tools:
- Financial analysis: Financial analysis is a fundamental tool in corporate finance that allows for the evaluation of a company's financial health. Through techniques such as financial statement analysis, important indicators of solvency, liquidity, and profitability can be obtained.
- Business valuation: Business valuation is a tool used to determine the value of a company. This can be done using different methods, such as discounted cash flow, earnings multiples, adjusted book value, among others.
- Risk analysis: Risk analysis is a tool that allows for the evaluation of risks associated with an investment or financial activity. Various techniques can be used to identify and quantify risks, such as sensitivity analysis, scenario analysis, among others.
- Risk management: Risk management is a set of techniques and tools that allow for the reduction or mitigation of risks associated with a financial activity. Various strategies can be used, such as portfolio diversification, risk hedging, among others.
- Financial planning: Financial planning is a tool that allows for the establishment of long-term financial objectives and the design of strategies to achieve them. Techniques such as cash flow projection, scenario analysis, among others can be used.
- Investment analysis: Investment analysis is a tool that allows for the evaluation of the feasibility of an investment. Various techniques can be used, such as net present value, internal rate of return, payback period, among others.
These are just some of the tools available in corporate finance. It is important to note that the proper use of these tools requires specific knowledge and skills, so it is recommended to seek the advice of a finance expert.
Corporate finance is a field of study within a company that analyzes decision-making regarding its financial situation. The goal of corporate finance is to increase the value and sustainability of the company..
Corporate finance is a branch of finance that focuses on the financial management of companies and organizations. In general terms, it refers to how companies obtain and use financial resources to achieve their business and financial objectives.
Corporate finance covers a wide range of financial activities, such as financial planning, risk management, investment evaluation, working capital management, capital structure, issuance of stocks and bonds, mergers and acquisitions management, and dividend distribution. All of these activities are important to ensure the financial strength and long-term success of a company.
In summary, corporate finance deals with the financial decisions that companies must make, with the aim of maximizing value for their shareholders and ensuring their survival and growth in the long term.
Prepare your budgets for the economic change.
Most budgets for the year 2023 were formulated in 2022, when the prevailing economic outlook was more bleak. However, we are now halfway through the year, and the signals are decidedly more encouraging. Do not let the mindset of the past prevent you from envisioning what is about to unfold.
Contamination of cryptocurrencies to financial markets
The recent collapse of one of the major cryptocurrency platforms has heightened the already volatile nature of cryptocurrencies and underscored the risks associated with investing in them without proper safeguards. This setback adds to the challenging period for cryptocurrencies, which have suffered significant losses in market value amounting to trillions of dollars. As such, investors must exercise caution and consider the risks carefully before investing in these assets.
Economic outlook for Latin America
América Latina se encuentra en una situación de crecimiento económico
Debt valuation
Valuation of External Debt of a country is a key indicator that summarizes the expectations of current and potential claim owners. It provides a useful guide for creditors, who can avoid the need to calculate the actual value of external debt.
Mergers and Acquisitions: Growth Strategies in the Business World
In the fast-paced and fiercely competitive business world, mergers and acquisitions (M&A) have emerged as a key strategy for organizational growth. These strategic transactions enable companies to expand, diversify their activities, and enhance their market presence rapidly and effectively. In this article, we will delve into the captivating realm of mergers and acquisitions and their impact on the financial landscape.
Mergers and acquisitions are processes in which two or more companies come together to form a new entity or when a company acquires another to integrate it into its existing structure. These transactions encompass not only the exchange of assets and shares but also strategic, operational, and cultural aspects. The ultimate goal is to maximize shareholder value and achieve synergies that propel the growth and profitability of the resulting enterprise.
The reasons behind a merger or acquisition can be diverse. Some companies seek entry into new geographic markets, the acquisition of novel technologies or products, or access to strategic resources such as specialized talent or patents. Others may pursue market consolidation, aiming to gain a larger market share and eliminate competitors. Additionally, mergers and acquisitions can also serve as a defensive strategy to fend off absorption by larger competitors.
The success of a merger or acquisition hinges on several factors. Firstly, it is crucial for there to be adequate strategic and cultural compatibility among the involved companies. Moreover, conducting a thorough financial and legal analysis to assess the viability and associated risks of the operation is essential. Change management and the integration of organizational structures are critical aspects that must be carefully addressed.
Over the years, we have witnessed numerous examples of successful mergers and acquisitions that have transformed industries. Companies like Facebook, Google, and Amazon have utilized this strategy to expand and diversify, acquiring emerging companies with innovative technologies that complement their core business models.
However, there are also cases where mergers and acquisitions have not yielded the expected outcomes. Factors such as poor planning, inadequate integration, or overvaluation of target companies can lead to operational failure.
Mergers and Acquisitions References
Mergers and acquisitions continue to be an alluring strategy for business growth in the financial world.
Nevertheless, it is essential for companies to approach these operations with a strategic focus, conduct comprehensive due diligence, and effectively address integration challenges.
Only then can they fully leverage the potential of these transactions and achieve success in an increasingly competitive business environment.
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