Technology companies are increasingly the main players in the largest M&A transactions. The introduction of “numbers” also affects the market itself – the speed, transparency of processes, and ultimately the structure and competitive environment. One of the best companies for M&A is MergerWare, the description of which you can check in the article below.
What Is MergerWare? Its Main Approaches
In today’s economic environment, many companies find themselves in a difficult position and face a choice: start the M&A process and invest in a new project, or wait for signs of a recovery in the company’s economy? The chaos inherent in the transition period often makes it impossible for management to effectively focus on maintaining the required level of current operations, realizing the necessary synergies from the merger, and ensuring operational integration of the business. At the same time, mistakes are often made in managing stakeholder expectations, and issues important to staff are overlooked. So what is MergerWare?
MergerWare has developed its own approach to solving the problems that we constantly observe in the process of mergers and acquisitions. Correctly placing emphasis and prioritizing business integration and company performance means realizing the benefits of the transaction in practice and, at the same time, preserving the existing opportunities for the further development of your core business, ensuring the normal process of current activities and implementing the planned transformations.
The MergerWare approach focuses on three key objectives:
- maximizing value;
- minimizing risk;
- and managing people through change.
The Solutions of MergerWare Digital Platform
We live in a world in which devices are increasingly integrated into human life. Technologies create such a connection that provides unprecedented access to information. Rapid technological transformation becomes a challenge for companies that do not have time to respond to changes. At the same time, it creates opportunities. The use of technology during the M&A of public and private companies increases transparency, improves the risk assessment system, automates routine processes, and generally improves the quality of the audit.
MergerWare digital software helps clients to clearly define priority goals and objectives, the most important resources needed to work in areas that create maximum additional benefits and advantages. MergerWare helps you manage relationships with your key stakeholders during the transformation: employees, customers, and regulators.
MergerWare solutions offered as part of M&A integration include such key aspects as:
- Speed up integration.
- Preparation of strategy and integration plan.
- Preparing for Day 1 after the trade.
- Identifying and implementing opportunities to create synergies.
Key Reasons for MergerWare Usage
The players involved in M&A transactions consider what is happening to be natural: after a funding boom, the market always begins to consolidate. Large players “hunt” for other companies in a liquidity crisis. But the current situation is different from those when a vigorous and small player is bought by giant companies from his own niche. Anyone can theoretically be the final buyer.
The key reason for M&A with MergerWare is to improve financial performance or reduce the risk for acquiring firms. Also, for mergers and acquisitions, there may be such motives:
- Economies of scale: reducing production costs while optimizing production costs. Reduction of fixed costs, and elimination of duplicating departments or production operations, resulting in increased profits.
- Increased Efficiency: the deal will help companies create a unique product or differentiated service that outperforms competitors and is highly valued by customers.
- Increasing revenue or market share: when buying or merging the business of two or more companies, the total revenue increases, the market share increases, and the competitiveness in the market strengthens.