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Kulbhushan Parashar

Merchant Banking Advisory Services for Corporate Restructuring Deals (M&A)

2 min read

M&A activity is a common phenomenon for business expansion and more companies are engaging in such transactions for integration. Mergers and Amalgamations require a number of compliances as per the provisions of the Companies Act. There are also various post-merger compliances for companies such as liaison with authorities. Merchant Bankers act as advisors in such commercial ventures, undertaking the responsibility of drafting necessary documents which include the scheme of Amalgamation, petitions to be filed to Court(s), Resolutions, and Notice to shareholders. Merchant Bankers also provide assistance in post-merger activities as part of their advisory services. 

The merchant Banker conducts a detailed review of the restructuring plan, analyzing risks involved and commercial aspects of the project to help with the negotiations and suggesting corrective measures as part of their advisory services. These services are available to buyers as well as sellers in corporate restructuring deals. 

To reach an equity swap ratio, valuation of both the firms involved in the restructuring exercise in a common practice. For measuring a company’s value varying financial factors are considered depending on the industry and market conditions. The Merchant Bankers are experts at calculating the worth of companies in M&A deals by carrying out a complete evaluation. Additionally in case of a listed Company being one party of restructuring deal, than fairness opinion on the valuation and swap ratio prepared by Chartered Accountant is also required from a Category I Merchant Banker. 

CCV is a SEBI Registered Category I Merchant Banker providing M&A Advisory services to corporate clients. The company is providing comprehensive due diligence support in business restructuring deals.