Mergers, MBOs & Acquisitions

At Eatons we have the experience to advise you on all aspects of mergers, MBO's and acquisitions ensuring you receive the best possible practical advice to make sure your specific objectives are met.

Mergers are undertaken for a variety of reasons the main one being to increase the company's long term profitability and maximise shareholder value. Mergers may also have other benefits to those involved including cutting costs, a reduction in tax, economies of scale and gaining a greater share of the firm's overall market. It may also allow a firm to enter a new market. Eatons have the expertise to work with you to ensure that whatever your specific business objectives are they are met.

It is often the case that a merger will be consensual, that is it is agreed by both parties and information shared to ensure that both sides will benefit. Two relatively equal firms may merge, using synergy, to produce a firm worth more than the sum of the two original firms. Here often a payment of shares will occur or payment of other monies to a target company. Eatons will advise to ensure this and all other aspects of the merger are done correctly and on time.

On some occasions a take over or merger may be hostile, in other words more of an acquisition. This is where, for example, a larger firm purchases the majority of a smaller firm's shares against the wishes of the target company, acquiring the target firm's operations and debts amongst other things. In these instances often a cash price per share is offered to the target company. A target company can take measures to defend itself against an unwanted takeover including, for example, various covenants that can be included in bond issues. At Eatons we have the experience to advise on what can be done to protect yourselves from an unwanted approach.

It will occasionally be the case that a merger is seen as anti competitive, that is if it is seen to restrict trade. In this case a judgement may need to be made as to whether it can proceed. At Eatons we can advise you on the processes and procedures involved.

A Management Buy Out is very similar to the acquisition of a company by other means. The difference lies in that the purchasers of the company are the managers of that company. This will have the practical effect that the due diligence undertaken will not usually need to be as extensive. At Eatons we can advise on how best to undertake a buy out of your own company or indeed sell if you are the current owner.

Our specialists will provide you with all the expertise and assistance you need to ensure all stages of your commercial transaction run smoothly, and in a cost effective and practical manner.

Services offered to companies and shareholders include:

• Acquisitions, mergers and disposals
• Management buy outs and buy ins
• Assets and share sales
• Disposals