About RFisher Law
Our aim is to offer both national and international businesses first-class data that will allow them to deal effectively with any issues that they might have.
These organizations deal with ongoing pressure situations while balancing the risks that can effectively close them down. Larger corporations will also have to requirements of conducting their business within tight constraints. These limitations include a wide range of financial, political, social systems as well as legal instances. At the same time these bigger businesses also have to ensure that complex cross-border issues are dealt with properly.
At RFisher Law, we provide trust-worthy Tax and Advisory services, as well as delivering auditing and accountancy skills. An extensive understanding of the industry ensures that we adhere to strict global standards.
Our aim is to work in accordance with your objectives, giving priority to your acquisitions. This allows us to exceed the expectations that our clients have in us.
WHAT WE DO
The Main Idea
We firmly believe that a successful merger or acquisition will ensure that two companies together are more powerful than two separate businesses. RFisher Law are mindful of the phrase one plus one equals three, for us it forms the equation of every positive acquisition or merger.
To produce shareholder value, the end result must be stronger than the two separate parts. We acknowledge that the stock value must rise as part of a successful process.
Very often it is this login that is the attraction for companies, especially when they are not achieving the results that they would prefer. The stronger companies will move to purchase smaller businesses, with a view to make a more cost-efficient or competitive organization.
At the point of a merger it is hoped that the more established business will be have a better footing to compete in their marketplace. Due to the potential gains, the smaller targeted companies will very often agree to being purchased, especially when they are aware that they are struggling to stand on their own
Whats the distinction between Mergers and Acquisitions
Terminology is often confused during this period, the word acquisition and merger are often used incorrectly. In legal speak, when a company is purchased and stops trading as its own entity this is correctly referred to as an acquisition.
However, a merger occurs when two companies decide to move forward as a brand new company. Very often these companies are considered to be of a similar size. In this situation both stocks are submitted and a new company share is issued. An example of this is when Chrysler and Daimler-Benz agreed to merge, with the new organization of Daimler-Chrysler being created.
These mergers of equals don’t occur very often. Mostly one company will acquire the other and as part of the agreement they will allow the purchased company to suggest that they had a merger of equals, thus avoiding some of the negativity that is suggested during a take-over.
Once Chief Executives agree that it would be preferably for their companies to join forces an agreement to purchase is also referred to as a merger. However, when the target company isn’t in agreement this is called an acquisition.
In most cased the way that the purchase is communicated to the target company will determine if the transaction is labelled as a merger or acquisition. The way in which the news is taken by the target company’s employees, board of directors and shareholders will play a large part in the terminology used.
To truly boost the cost efficiency of the new business, synergy is required. From a successful merger, companies can anticipate benefits in the following areas
Employee reductions. It is appreciated that each merger comes with the expectation of some form of staff level reduction. High levels of expenditure can be reduced by lowering the numbers of staff members that each department utilizes. However, it should be remembered that this doesn’t explicitly apply to employees, it can also affect higher positions including the CEO, who very often leave with a compensatory allowance.
Mergers almost certainly provide an opportunity for improved purchasing power, especially when buying supplies or equipment. The rationale behind this is that larger companies have the ability to demand improved terms from their suppliers.
Bringing in newer, better technology will often assist a company with a competitive advantage. Quite often a larger company might look to buy smaller companies, especially those with connections to valuable technologies.
The newly built company will benefit from the strength that brings about increased marketplace advantages. Improved industry visibility and market reach allows for an increase in earnings and revenues.
Another important consequence is that the new organization generally will find it easier to raise future capital as required. This is realized by the ability to attract larger investors from an improved standing in the market.
While the above is true, it should not be assumed that synergy is created at the touch of a button. Many mergers are successful, but there are also occurrences when they simply don’t work out. Very often these unwanted instances are caused because synergy and ultimately transition isn’t managed in the way that is should.
The market place is all too aware that there are bodies of people that can make large gains from successful acquisitions and mergers. Ultimately it can be the company that suffers from allowing a discounted share pricing strategy. At RFisher Law we are completely open about the reasons as to why some acquisition or merger deals fail to work out as expected.
Varieties of Mergers
When it comes to business structures, there is a kind of generality that occurs. Here we will examine some of the exceptions that are in evidence between the merging company’s relationships.
Horizontal merger – This happens when the two organizations exist within the same industry. Very often these businesses will compete for similar customers, supplying near same services and products in the same market place.
Vertical merger – This occurs between a company, customer, business or supplier within the same industry. An example of this could be a tire manufacturer merging with one of its rubber suppliers.
Market-extension merger – Two companies that supply an identical item, but in separate geographical areas.
Product-extension merger – Business that supply different products or services in the same marketplace.
Conglomeration – This is where the two firms that merge provide unrelated goods or services to each other, but the end consumers are the same.
Mergers are identified by the way that they are funded. Each of which has its own individual characteristics that replace to the continuing business model and the financiers.
Purchase Mergers – As the name suggests, this type of situation occurs when one business is purchased by the other. This purchase is made up of a monetary value and is subject to the relevant tax implications. Typically, the larger companies tend to favor this kind of merger due to the potential tax benefits. Acquired assets are often “written-up” to the value that is actual. Tax duties are potentially minimized due to the distinction that assets could depreciate annually.
Consolidation Mergers – This type of merger sees a brand new company developed. Both of the previous companies now co-exist under a new name, with the income tax liabilities being the same as those featured in a purchase merger.
Similar to mergers, acquisitions take place to afford companies improvements in efficiency, market exposure and economies of scale. All acquisitions entail one business purchasing another business, with no change of stock or amalgamation. Acquisitions tend to be advantages to all parties; however, at times they can feel much more aggressive.
During an acquisition, the purchase will use either cash or shares or some combination of both cash and shares. In some retail business takeovers, a property transfer may also take effect. In real terms, company A might purchase company B’s property portfolio for cash.
Another acquisition is referred to as a reverse merger. This occurs when a business gets a discount to become publicly listed within a relatively short period of time. The reverse merger can take place when a private company is looking to expand its opportunities and looks to increase funding by taking on the guise of a publicly-listed shell business. In this case the smaller company will merge with the other and provide the business with shares that can be traded on the market.
Regardless of the key target for a merger or acquisition is to develop a business that is larger than the sum of the individual components. The ultimate success and prosperity of the acquisition will depend on the harmony that is created during the process.
The mergers and acquisitions team at RFisher Law are experienced in several different industries. We are aware of the specific issues that clients have in these markets and offer firm transactional advice that allows our clients to meet their goals. RFisher Law possess one of the most experienced media legislation practices, incorporating a specialist media mergers & acquisitions team. Our team is aligned to provide expert assistance to all types of new industry acquisitions.
Our goal is to turn knowledge into worth for the benefit of our clients, people and the resources markets. Our partner organizations offer global based clients a range of regular financial and accountancy solutions.
We ensure constant delivery by working with clients and associates, understanding their issues and developing practices to fulfil objectives. RFisher Law believe that by working with empathy, the very best results are achieved, benefiting all business as result.
Playing a pivotal role in the money markets, RFisher Law are also very active in supporting reform within our own market. The result of this activity is that our own reputation is bolstered, along with confidence in our business. We believe that being responsible in business should be the center of our society and strive to make a positive differential in the areas we operate.
WHAT WE STAND FOR
Working on a global basis we are able to provide support to all of our clients. We can be counted upon to stand alongside them in their dealings. RFisher Law represent clients and protect their intellectual property throughout Europe, Latin America, Asia and the Middle East. Our relationships see us providing global brand protection to multi-country acquisitions and mergers.
RFisher Law do not only work for larger Fortune 500 companies; we are also adept at representing small start-ups too. We are well versed in starting companies, mezzanine financing, handling public offerings plus acquisitions and mergers. We are also able to provide strategic pre-litigation and representation in adversarial proceedings. RFisher Law are recognized in the industry as the firm to go to for all your merger and acquisition needs.
WHO WE ARE
Although our teams come from a wide variety of backgrounds, they all share a united set of morals. The working environment provides a place where they can develop themselves and each employee is given the opportunity to produce their best work. We believe this policy provides RFisher Law with the platform for immense breadth and depth, helping to deliver our clients a wide range of experience, capabilities, view and ideas.
Our leaders, guide and direct our global network of member firms. Giving unprecedented importance to the delivery of excellence, with services that are globally consistent.
We have a proud history dating back over 20 hundred years. The same history shows that we built our name on a variety of big name mergers. The law firm RFisher Law was founded eight years ago by Vincent, Radcliff and Shelby and is proud to be referred to as a truly global organization, with numerous countries featuring partner firms.
Good corporate governance is at the heart of our ideals. At RFisher Law we understand that we should always take responsibility for our actions and must always keep our objectivity and independence. Embracing change, we are dedicated to promote positive advancement. This helps us to provide effective guidance to our clients, which in turn facilitates them to increasing value for shareholders.
The priority that we give global industries ensures that we always observe client’s requirements and the needs associated to address the industry specific issues that they face.
We work within the framework of industrial regulations and local laws and promote a consistently high level of professionalism. This allows us to work with any international or global organizations, providing them with a consistent approach to service quality and behaviors.