In our economy consolidation through mergers and acquisitions is a way to maintain stability, growth as well as cashing in on financial opportunities. Consolidation, reducing costs through economies of scale have been the pivoting point in the merger and acquisition decision. Not only can big companies from this century's phenomenon. Many small companies and businesses can also benefit from these opportunities. MERGERS Smaller businesses phase out and cease operating once the proprietors retire or become deceased. In these cases, family members will not benefit from the diligent work performed by the proprietor and usually from the many years the proprietor invested in developing the business. It would be wiser and financially feasible to merge the operation with similar businesses. The owner would contribute the business to a new entity and would receive cash, stock and debt in exchange for it. When the owner decides on retiring on in the event of death, family would receive shares in a larger organization. Shares should grow in value and family would have a hard asset to own. We can review these opportunities with a client and plan a multy phase program to achieve the goals on a possible merger. ACQUISITIONS Companies may grow by infusion of capital and as a result of a faster way to growth is to acquire similar or peripheral businesses. The acquisition can be made by using the company's cash, the raising of capital or financing by financial institutions. The purpose for acquisition is for quick growth and increased profitability. Some investors may acquire competitors to control sales prices. Other investors may want to do a private offering to increase the acquisitions and to later bring the company public, which would be the ultimate goal. .
JOINT VENTURE
DEVELOPMENT AND MANAGEMENT
GMA assists clients in finding business
opportunities and assists them with start up planning and management.
We also assist clients in finding Joint Venture partners for larger
projects. We search for JV partners, develop legal
infrastructure (assist legal professional), preparation and negotiation
of operating agreements, negotiate partnership terms, start up planning,
etc. GMA may also take JV partnership positions and provide
financial management the new formed entity on an interim or long term
basis.
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