Many businesses, both large and small, are making the big moves toward mergers & acquisitions in Australia. As Australia is one of the most important trading partners in most other countries, it is a wise move to be well informed on the details of any potential transaction. There are many issues with mergers that should be carefully considered, from timing to compensation to tax liability, to name just a few. The following is an in-depth analysis of M&A Advisory Sydney services. All businesses need to seek professional assistance when contemplating mergers & acquisitions.
Acquisitions
Much like the United States, Australia offers an array of corporate formation options. One of the most common types of mergers in Australia is the combination of acquisitions. Companies involved in mergers & acquisitions must decide whether to purchase a business with assets based in Australia or foreign countries. In many cases, international equity will be a crucial driver of value for the acquired business. Many companies that wish to enter into mergers and acquisitions will benefit from obtaining management advice from M&A Advisory in Sydney.
Property Market and Development
Other types of mergers & acquisitions also provide opportunities for companies wishing to enter into Australia’s lucrative property market. The demand for property in Australia is robust at present times. This has created a situation where existing property owners have benefited from low property prices, but their equity is decreasing. This is because equity has been steadily dropping in value since the global economic downturn. M&A advisory can guide you to deal with such investments while keeping track of market indicators.
Joint Ventures
Another area where potential mergers & acquisitions could occur is through the creation of a joint venture. Whether a business chooses to enter into a partnership with another firm or enter into a freehold purchase agreement (or FDA agreement) with a similar business, both firms will need capital. While both firms will have similar products or services, the amount of capital required by each company will vary. This is where an advisory service can prove highly beneficial.
You Need a Qualified Advisor
There are many reasons why a business may want to acquire another firm. Perhaps the existing company is growing too slowly to provide the level of success desired, or perhaps there are issues with one partner that require attention from another. Regardless of the reason, mergers & acquisitions typically involve a significant amount of cash, and therefore it can be difficult for investors to provide the required funding. A qualified advisor can help guide a business through this process.
