The dynamics of the world economy require companies to continuously grow, restructure and review their strategies. One of the most striking ways of these processes is through mergers and acquisitions (M&A) activities.
Mergers and acquisitions (M&A) enable companies to increase their market share, enter new markets and improve their operational efficiency, especially in an economy where global borders are blurring and competition is fierce at all levels, including price, production, technology, and marketing.
M&A can directly affect not only large-scale companies but also small and medium-sized enterprises. In emerging economies such as Turkey, such transactions are becoming increasingly important.
A merger is a process that occurs when two or more companies terminate their independent legal existence and form a new company by combining all their assets and liabilities, or when one company eliminates the other.
Mergers are usually undertaken to increase market share, improve operational efficiency or enter new markets.
Mergers between companies operating in the same sector are called "horizontal mergers", while mergers between companies operating in different sectors are called "vertical mergers".
An acquisition is the purchase by one company of a certain percentage or all of another company, either on a share or asset basis.
As a result of this transaction, the legal existence of the acquired company may continue or cease, depending on the terms of the agreement.
Acquisitions may be undertaken to gain access to new technologies, patents or strategic assets, to strengthen the company's market position or to reduce competition. These transactions also aim to create financial advantages or operational synergies.
This process encompasses all phases of a company's M&A process, from the decision to make a merger or acquisition to the implementation of that decision, and involves complex financial, legal and strategic decisions.
M&A processes usually take place in the following order:
1- Partnership
This is the stage to assess collaboration opportunities and identify the right partner for a potential merger or acquisition. At this stage, companies establish initial contacts with potential business partners in line with their strategic objectives and conduct an overall fit analysis.
2- Valuation
This is the stage where the financial value of the potential company is determined. This valuation is based on the company's financial statements, assets, liabilities, revenues and potential growth prospects. Expert financial advisors and analysts prepare a detailed valuation study.
3- Negotiations
This is the stage where the parties come together to negotiate the terms and details of the merger or acquisition. In this process, many critical issues such as the sales price, payment terms, and the management structure of the company are discussed.
4- Agreement
This is the stage where the terms agreed upon by the parties as a result of negotiations are formalized in an official document and signed. This document is usually called a "Share Purchase Agreement" and specifies the rights and obligations of the parties in detail.
5- Integration
After the formalization of a merger or acquisition agreement, the process of integrating the acquired company begins. This process involves merging organizational structures, business processes, corporate cultures and systems. Successful integration is the key to the long-term success of the merger or acquisition.
M&A advisors act as a bridge between the parties. From the beginning to the end of the transaction, advisors can provide strategic advice, provide valuations, assist in negotiations and guide the deal process.
These professionals play an important role in ensuring that companies make the right decisions and mitigate potential risks.
They conduct sectoral and market analysis to identify potential targets or buyers.
They perform a comprehensive financial analysis to determine the true value of the company.
They take an active role in negotiations to ensure that an agreement is reached between the parties on the best terms.
Before the acquisition or merger takes place, they conduct a detailed due diligence on the target company.
They make strategic recommendations on how the transaction should be carried out.
After the deal is finalized, they may in some deals take on the task of planning and directing the integration process of the two companies.
Mergers and acquisitions (M&A) activities in Turkey have gained importance attracting both domestic and foreign investors in recent years. Turkey's strategic location, young population, growing economy and investment opportunities in many sectors are just some of the factors that stimulate M&A activity.
Some sectors, such as energy, retail, healthcare and technology, stand out in these activities. Foreign investors' interest in Turkish companies has been fueled mainly by European, Gulf and Asian countries.
However, the M&A sector in Turkey also faces some challenges, such as geopolitical risks, macroeconomic fluctuations and legal regulations. This makes the role of advisory firms even more important in the successful completion of transactions.
M&A advisory firms play an important role in mergers and acquisitions, providing advisory services from the beginning to the end of the transaction and ensuring that the process is completed in the most efficient and profitable way.
Especially in complex transactions, the experience, industry knowledge and analytical approach of these advisory firms are key to the successful completion of the transaction.
M&A advisory firms, both globally and in Turkey, are recognized as leading the industry, setting trends and successfully managing transactions.
Goldman Sachs: One of the world's leading investment banks. It has advised on many large-scale mergers and acquisitions. Thanks to its experience in the sector and global network, it is one of the first-choice advisors for many global companies.
J.P. Morgan: J.P. Morgan, a global financial giant, is also an important actor in M&A advisory. It is frequently involved in big ticket transactions.
Morgan Stanley: Another investment bank that has advised on many important M&A transactions both in the US and globally.
Merrill Lynch: Has contributed to the successful completion of M&A processes by advising in many sectors on a global scale.
ÜNLÜ & Co is Turkey's leading mergers and acquisitions advisor with 132 transactions and a transaction volume of USD 18.4 billion, which we have realized with our client-focused approach, ethical values and transparency.
Our Corporate Finance Team, comprised of the industry's leading professionals, develops financial solutions that best suit the needs and preferences of its clients within the framework of global ethical standards.
ÜNLÜ & Co's advisory services in this field include research, valuation, negotiations, due diligence and negotiation processes.
M&A transactions often alter the dynamics of the economy and related industries. In particular, large mergers can affect the balance in the market, lead to the emergence of new leaders or give new strategic directions to the industry.
The economic impact of M&A transactions can vary depending on the scale of the transaction, the industry and the region where the transaction takes place. In general, however, such transactions contribute positively to economic growth, employment and sectoral development.
