The act of organizing a company, business, or system in a new way to make it operate more effectively:
Providing investigation, restructuring, turnaround and insolvency advice and services to underperforming and financially distressed businesses, their lenders, stakeholders and advisors.
· Preparing and reviewing business plans (IBRs)
· Turnaround and performance improvement.
· Stakeholder options analysis (entity priority / liquidation models)
· Financial restructuring execution (stakeholder management, negotiation support)
· Crisis management.
· Amalgamation Services
· Due Diligence
· Joint Venture Consultancy
· Business Process Re Engineering
· Financial Structuring & Re Structuring
· Mergers & Acquisitions
What Is an Amalgamation?
An amalgamation is a combination of two or more companies into a new entity. Amalgamation is distinct from a merger because neither company involved survives as a legal entity. Instead, a completely new entity is formed to house the combined assets and liabilities of both companies.
Procedure for Amalgamation
1. The terms of amalgamation are finalized by the board of directors of the amalgamating companies.
2. A scheme of amalgamation is prepared and submitted for approval to the respective High Court.
3. Approval of the shareholders’ of the constituent companies is obtained followed by approval of SEBI.
4. A new company is formed and shares are issued to the shareholders’ of the transferor company.
5. The transferor company is then liquidated and all the assets and liabilities are taken over by the transferee company.
Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care.
It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for an acquisition. The theory behind due diligence holds that performing this type of investigation contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers and by ensuring that this information is systematically used to deliberate on the decision at hand and all its costs, benefits, and risks.
The due diligence process (framework) can be divided into nine distinct areas
1. Compatibility audit.
2. Financial audit.
3. Macro-environment audit
4. Legal/environmental audit.
5. Marketing audit
6. Production audit.
7. Management audit
8. Information systems audit]
9. Reconciliation audit.
Joint Venture Consultancy
Joint Venture refers for 2 or more firms joining together just to create
a relationship and share intellectual properties and revenue. The businesses
need adequate money and energy in hand to enter into the business. Joint venture Advantages:
§ Provides companies with the opportunity to gain new capacity and expertise.
§ Shares risks with a venture partner.
§ Globalizing inventory
§ Offers a creative way for companies to exit from non-core business.
§ Distribution Channel Connectivity
§ access to new markets and distribution networks.
§ increased capacity.
§ sharing of risks and costs (ie liability) with a partner.
§ access to new knowledge and expertise, including specialised staff.
§ access to greater resources, for example, technology and finance.
Business Process Re Engineering
Just making a plan isn’t enough! Effective execution is needed. Proper Business Process Re-engineering (BPR) execution can prove to be a game-changer for any business. It has the potential to perform miracles on even a failing or deteriorating company, by escalating the profits and propelling business growth. Business process re-engineering definition is fundamental rethinking and redesigning of business processes so as to attain vivid improvements in all the critical aspects like service quality, process outcome, cost, and process speed. You need to be capable enough to manage and carry out each and every step carefully and successfully. You may face many failures in your attempts to make a reasonable and beneficial change in the processes.