An acquisition is the purchase of one business or company by another company. It happens when acquiring company buys most or all target company’s shares in order to take control and or other assets of the company. They have to buy more than 50% of ownership. In acquisition usually bigger company buys smaller company and absorb it or run it as subsidiary. Roll-ups or consolidation happen when two or more companies combine in a new business entity.
Acquisitions are divided into “private” and “public” depending on whether acquired or target company is or is not listed on the public market. Additional dimension or categorization consists of whether an acquisition is friendly or hostile (hostile takeover). More mergers and acquisitions happens with small to medium size companies. One type of acquisition is reverse merger or reverse takeover enables private company to be publicly listed in a relatively short time frame. Reverse merger occurs when a privately held company (often one that has strong prospects and is eager to raise financing) buys a publicly listed shell company, one with no business and limited assets.
Before purchasing due diligence must be performed and establish whether the asking price is reasonable, what is target company’s debt load, are there any unusual level of litigation and to determine the state of financial statements. Reasons for acquisition are many, economics of scale, greater market share, increased synergy, cost reduction or elimination of competition. Financing options are also varied, from raising private equity through taking a loan to mezzanine and seller financing. Achieving acquisition success is proven to be very difficult; various studies have shown that 50% of acquisition were unsuccessful. Mina Mar Group can help you to in all stages of acquisition process.
At MMG, we have built a roll-up fund and subsequent processes that are created for companies that desire to develop through the use of acquisition. Get in touch with us now if you own a company that has an acquisition method so that we may hold a discussion to decide if you have the criteria suitable for our program. If you are suitable for our program, we will cater for the costs of the acquisition such getting the capital. Read through the information provided below to have knowledge of our program.
1. SEC and Other Filings
MMG will take care of the requests and filings of all important documents such as the development and submission of all documents of SEC which include the Edgar Form and filings, S-1 registration statements, FINRA submissions and so on.
2. Legal Compliance
Since we have attorneys and paralegals as part of our team, we will ensure that all processes of the program are in accordance with the agencies of the government.
3. Public Shells
For reverse mergers, we will provide an inventory of verified and legal public shells for our clients with so as to offer a publicly traded vehicle that can assist in raising capital.
4. Distribution and Fundraising
At MMG, we join hands with high-level investor relations firms that are given that task of raising the capital needed for our projects. Using the process, we manage these investor relations firms to raise maximum capital.
5. Institutional Investors
In the US, MMG has a solid relationship with a number of the biggest institutional investment funds. Assistance in getting capital for equity or debt is within our reach.
6. Broker-Dealers
We have a team of experts that are licensed to offer our clients a ready-made dealer/broker that is appropriately registered with FINRA and two or more clearing houses. We are capable of helping our clients with financing and restructuring of books of business.
7. Established process
Our partners at MMG have been successful in assisting over 160 companies to raise capital. Through the aid of our proprietorship plan with 32 steps, we ensure that clients only dedicate minimal time to the completion of the whole process involved in the IPO. As the process of IPO is going on, we ensure our clients concentrate on developing their business.
