The Importance of Advisory Services in Mergers and Acquisitions

It is a well-known fact that, nowadays, the corporate world is getting a lot bigger, and there is one key factor that is playing a huge role in the constant growth and expansion of industry: globalization.

What difference has globalization made in the world of commerce?

Technological innovations have enabled improvements in transportation and communication. Getting in touch with the other side of the world doesn’t take weeks anymore, it takes seconds. Each individual has instant access to the entire world, and the efficiency of modern transportation means individuals—and businesses—no longer have to restrict themselves to within their own political borders. This is called international diversification—it’s called innovation—and it has made a significant impact on the way corporations can be run. International business arrangements have developed into multinational enterprises and transnational corporations—it has led to an increase in the development of, and the opportunity for, mergers and acquisitions.

Global expansion, however, has also made mergers and acquisitions a lot more critical to the success of the corporation—and it has made things a lot more complex. If you are considering whether a merger or acquisition may prove beneficial for your company, you may want to seek out an advisory service first.

FinanceWhat are the benefits of mergers and acquisitions?

Mergers and acquisitions (http://en.wikipedia.org/wiki/Mergers_and_acquisitions) are intrinsic components of strategic management and corporate finance, and they generally focus on the buying, selling, dividing, and combining of different companies or entities that could make a significant impact on the growth or development of an enterprise within its sector. Mergers and acquisitions refer to the restructuring of one or multiple organizations—a reorganization that could in turn lead to the growth of positive value. On a larger scale, when multiple smaller organizations are concentrated into one or a few larger companies through mergers and acquisitions, the process is referred to as consolidation.

What’s the difference between a merger and an acquisition?

In terms of the economic outcome of both mergers and acquisitions, it can be tricky to distinguish the two terms.  Mergers refer to the legal consolidation of two companies into one. Acquisitions, on the other hand, occur when one company is taken over by another; the company that takes over establishes itself as the new owner, and the other company, the target company, remains as an independent legal entity that is controlled by the acquiring company.  Both mergers and acquisitions, however, can result in consolidation. Generally speaking, when the CEOs from both companies are in agreement that a merger would benefit them both, it is referred to as a merger of equals. When the target company is unwilling to be purchased, though, the deal is known as “unfriendly,” and it is regarded as an acquisition.

Why are advisory services so necessary to the formation of mergers and acquisitions?

Globalization has increased the magnitude and growth of the deal values that are associated with each merger and acquisition. As a result, there has been a recent increase in the occurrence of “mega-mergers.” What this means is there is a lot more at stake in the terms of the agreement, and advisory services have begun to play a more crucial role than ever before.

Advisory services are often sought out during mergers and acquisitions, regardless of the size or global scale of the organisations that face consolidation. Advisory services facilitate the undertaking and can actually help to maximize the overall value of the transaction. Advisory services form an experienced and professional third party to the agreement; they can help to facilitate communication between CEOs of both companies, and can ensure that the outcome of the deal will be as successful and lucrative as possible.

What factors do advisory services focus on to ensure the success of the merger or acquisition?

There are ten key factors (http://umu.diva-portal.org/smash/get/diva2:141248/FULLTEXT01.pdf) that advisory services are instrumental in overseeing and facilitating. Advisory services ensure that:

1.  There are clear and complete objectives and goals, and that the overall scope of the project is clearly considered and expressed to and by both parties;

2.  Clients have been consulted regarding the proposed merger or acquisition and have accepted the proposed terms;

3.  The project manager is both competent enough to manage the merger or acquisition, and that he or she is committed to the success of the project;

4.  The project team members are competent and committed to the project;

5.  Communication and the sharing or exchange of information is being handled effectively;

6.  The project plan is developing properly;

7.  Resource planning has been taken into consideration and is under way;

8.  Time management and confidentiality are being enforced; and

9.  There is a proper price evaluation and financing scheme.

Most importantly, advisory services are instrumental in managing risk. Each of these factors is critical in not only bringing the merger or acquisition into fruition, but also in ensuring the success of that merger or acquisition.

Getting Over An Alcohol Addiction

Getting over an addiction or going to rehab for alcohol can be extremely difficult for a lot of people. The downward spiral that is alcoholism can sometimes seem impossible to get out of. Thankfully, there are so many options for the rehabilitation of alcoholics before things end up getting too out of control. While a lot of people believe that addiction ends as soon as official rehabilitation has ended (for example, a 90-day detox), in reality, addiction never ends. The best thing one can do once a treatment program has ended is to move into a sober living environment. This is a place where alcohol and drugs are not permitted on site. It gives the inhabitants a stable living environment that is not ruled by the drink. There are also out-patient programs that give people a community to rely on for strength, guidance and acceptance.

What it involves

These programs allow for the full circle recovery of alcoholics that rehab does not provide. Through individual counseling, relapse prevention groups, and 12-step meetings, those affected by alcoholism can realize an all-around more fulfilling recovery. In addition to these important components, they also offer social support for those who want to rejoin the workforce and society after being treated for their addictions. Perhaps the most effective tool in the rehab for alcohol and recovery of addicts is education. A lot of times, there is more than one party at fault in the creation of an addiction, like in families where parents enable their children. Through the education of addiction, families are able to realize that more than one person may be to blame.

The cons

Unfortunately, there is a huge issue with motivating people when they are in an out-patient program. Due to the fact that they are not in a full time treatment program, there is a lot of room for the relapsing of a patient. In quite a few cases, people lack the confidence in themselves to actually continue on with treatment once they’ve left a 30, 60 or 90 day rehab alcohol program. The immediate shock of being put into treatment generally wears off and people tend to become, for lack of a better word, lazy in their treatment.  Sometimes they even end up skipping out on meetings in out-patient facilities because of the travel that is usually required.

The bottom line

Realizing and admitting to having a dependency on alcohol or drugs can be a feat in and of itself. For a lot of people, it can be extremely hard to figure out and choose the best treatment program for their situation. It’s important for all of the options to be considered so that an addict can make an informed decision. Rehabilitation does not stop when the rehab alcohol treatment ends, and, for some people, it is a life long struggle to return back to any sort of normal life. The most important thing that people need is to ensure that they have the support of someone—either family, friend or stranger.

What You Need to Know When Contemplating Newborn Adoption

For many couples, family planning doesn’t always follow the traditional plan. Many couples struggle to conceive, either naturally or with a physician’s assistance, to no avail. Adoption is a natural next step for those dedicated to raising children. Some potential parents want to bring a child up from the beginning, opting for newborn adoption. Adoptions are of two types, open and closed. Which type adopters choose is completely their decision. It is important to consider the long term impact, effects, and affects of which type you choose for not just you, but most importantly for the child.

An open adoption lets the potential adopters and the pregnant mother interact freely with one another during pregnancy and birth. They are given the chance to get to know each other, so they all may participate during pregnancy, labor, and birth. The adoptive parents are generally involved with all obstetrician appointments and are privy to important biological family history. In an open newborn adoption, the birth mother’s role usually ends at the hospital, but it may continue. There may be only updates while some birth mothers and fathers even get to visit at some point during the years.

A closed newborn adoption is when there is absolutely no information at all exchanged between the birth mother and the adoptive parents, except for medical conditions and issues. The adoptive parents do not know or ever meet the birth mother or the birth father. This option is good for those to prefer privacy and confidentiality. Many want to avoid having several people involved in their family dynamic and new family development. There are not as many closed adoptions as there used to be, but it is still a popular adoption method taken. When there is a closed adoption, the child never finds out any information about the birth parents, or can access the records, unless there is something specifically written in the agreement that says otherwise.

Regardless of the type of newborn adoption that you choose to go forward with, it is important to have an adoption service to walk you through all steps of the process. There is more than a few things to take care of when deciding on an adoption service. There is an abundance of information and many lengthy steps to take to have a successful adoption take place. A quality service will provide you with all the information, resources, counseling, and legal assistance you require so that you meet all the requirements needed to complete your adoption.

They should conduct detailed interviews with everyone involved so that potential adopters and birth mothers are matched accordingly. Having a qualified adoption expert to handle your paperwork, and all legal filings take the stress out of the newborn adoption process, making it much easier to prepare for your new bundle of joy!

If you are ready to discuss your options for a newborn adoption with a professional adoption specialist, then you should not hesitate to give adoption experts a call. They will love to talk to you about the future of your family, and match you to a pregnant birth mother soon.