|
Mergers (and
Consolidations):
Mergers (and Consolidations) are
increasingly common amongst small and medium sized businesses and
can be of a variety of types (see panel on the right). It is likely
that the businesses considering a merger will know a fair amount
about each (they may have a supplier/customer relationship, or may
even be competitors), in this case the real value of a Technical
Audit is to ascertain the level of compatibility of the various
functions within the organizations and to assess the likely risks
involved.
There various types of audit that
can be applied in this situation, including,
- Assessment of one of the
business
- Review of both businesses
as separate entities
- Review of both businesses
as merger partners
- Audit of an identified
function
|
Costs:
Mergers can be complex situation to analyse. The cost of a Technical Audit will depend on
the level on complexity of the businesses involved and
the detail required. Our experience allows us to provide a fixed
price based on the result of a detailed initial assessment.
|
|
Definitions:
Merger:
The combining of two or more entities into
one, through a purchase acquisition or a pooling of interests.
Differs from a consolidation in that no new entity is created
from a merger.
Horizontal Merger:
Merger of two or more companies with similar product
lines.
Vertical Merger:
Merger of a vendor and a customer.
|
|
Consolidation:
The combining of separate companies, functional areas,
or product lines, into a single one. Differs from a merger in
that a new entity is created in the consolidation. | |
