Suppose that a
company wants to acquire another, or the company itself wants to be
acquired. A merger is a complicated undertaking, and it requires the
assistance of numerous specialists:
Investment banks:
Investment banks
advise on the suitability of the merger for the buyer and/or the seller.
Investment banks also assist with financing and strategic issues.
Well-known
investment banks include: Goldman-Sachs, Merrill-Lynch, and J.P. Morgan
Chase.
Attorneys:
Attorneys are
needed because of the legal complexities involved in a merger. Their
role becomes even more essential in the event of a hostile takeover, as
both sides will engage in extensive legal maneuvering. Attorneys also
handle the filing of Securities and Exchange Commission (SEC) documents
that are necessary for a merger.
Valuation Experts:
How much is a
particular company worth? How much are the securities used for an
acquisition worth? Valuation experts answer these difficult questions.
They are employed by both sides involved in the merger.
Accountants:
Accountants take
care of many essential details that are part of a merger transaction.
Accountants also prepare pro forma statements that are used during
merger negotiations.