AmerigoPartners  
Merging With Another Business
 
Instead of selling your company, you may be considering the possibility of a merger with another company as part of diversification strategy or to provide personal liquidity for the stockholders. Amerigo can help. We will help you to identify and analyze potential merger candidates to insure that the proper synergy is produced.
 
The primary motivation for most mergers is to increase the value of the combined enterprise. If Companies A and B merge to form Company C, and if C's value exceeds that of A and B taken separately, then synergy is said to exist. Such a merger should be beneficial to both A's and B's stockholders. Synergistic effects can arise from four sources:

  1. operating economies of scale in management, production, or distribution;
  2. financial economies, which could include a higher price/earnings ratio, a lower cost of debt, and/or greater debt capacity;
  3. differential management efficiency, which implies that the management of one firm is relatively inefficient, so the firm's profitability can be improved by merger; and
  4. increased market power due to reduced competition.
If synergy exists, then the whole is greater than the sum of the parts. Synergy is also called the "2 plus 2 equals 5 effect". The distribution of the synergistic gain between A's and B's stockholders is determined by negotiation. Amerigo can help provide third party negotiations that will protect your interests.

Amerigo Corporate Finance Partners, LLC will assist your company to plan its future and decide whether a merger is right for your company. We will navigate you through the various merger issues, that when done correctly, will add value to your holdings and/or create a potential liquidity event in the process. Additionally, Amerigo Corporate works with various capital market sources to identify potential funding for the merger.

BUSINESS PLANS OR EXECUTIVE SUMMARIES

We are always looking for new investment prospects. If you feel you have an opportunity that would fit with Amerigo´s approach and strategy, please submit a business plan or executive summary to the below address or electronically to:
MKudela@AmerigoPartners.com

Amerigo Corporate Finance Partners, LLC
20501 Ventura Blvd. Suite 270
Woodland Hills, CA 91364