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| Merging With Another Business |
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| 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. |
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| 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:
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- operating economies of scale in management,
production, or distribution;
- financial economies, which could include a
higher price/earnings ratio, a lower cost of
debt, and/or greater debt capacity;
- 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
- increased market power due to reduced competition.
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| 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 here...
Amerigo Corporate Finance Partners,
LLC
20501 Ventura Blvd. Suite 270
Woodland Hills, CA 91364
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