{"id":14224,"date":"2023-12-25T03:50:13","date_gmt":"2023-12-25T03:50:13","guid":{"rendered":"https:\/\/www.articlespringer.com\/?p=14224"},"modified":"2023-12-25T03:50:13","modified_gmt":"2023-12-25T03:50:13","slug":"financial-feasibility-of-merger-and-acquisition-businesses-in-uae","status":"publish","type":"post","link":"https:\/\/www.articlespringer.com\/financial-feasibility-of-merger-and-acquisition-businesses-in-uae\/","title":{"rendered":"Merger or Acquisition Businesses in the UAE: Know All About Their Financial Feasibility"},"content":{"rendered":"
Should two companies join together? A feasibility study helps decide. What steps does this involve? First, look at all the costs of combining operations. Will bigger size and scale boost earnings? When might that income boost happen? Compare costs and future revenues to see if the deal is worthwhile. Also, factor in risks; it might not succeed. Doing a financial <\/span>feasibility study in the UAE gives companies the facts to determine if partnering up pays off.<\/span><\/p>\n Calculate Synergy Benefits and Costs Estimate the value boost from merging capabilities versus integration expenses to understand the dominant effects driving potential merger success.\u00a0<\/span><\/p>\n Prepare pro forma financial statements. Project forward 3-5 years on how combined income statements, cash flow, etc. could look based on current individual company data to quantify merger impacts over time.<\/p>\n Run merger models under optimistic and pessimistic assumptions to bound potential upside and downside risk factors. Stresstest how results fluctuate given different conditions.\u00a0<\/span><\/p>\n Study expected headcount changes, facility\/location consolidations, and personnel interactions required for a cohesive culture to minimise talent losses during transitions.\u00a0<\/span><\/p>\n Assess if any business agreements, import\/export policies, or data security protocols pose compliance barriers that could obstruct integration or require renegotiation before pursuing a deal.\u00a0<\/span><\/p>\n Determine if physical assets and inventory spanning wider operational locations post-merger introduce a currency, tax, shipping, or inventory blindspot vulnerabilities that jeopardise financial tracking and forecasting accuracy.\u00a0<\/span><\/p>\n Vet that existing IT systems, equipment, software, and data standards can be consolidated cost-effectively, or if upgrades add complexity that slows realising digital synergies.<\/span><\/p>\n Test pricing, feature preferences, and purchase intent for hybrid merged products and services to confirm the expanded catalogue indeed taps wider consumer demand vs. just cannibalising existing sales.\u00a0<\/span><\/p>\n Agree whether the leadership team will blend executives from both companies or skew towards one legacy firm to set the scope for power alignments and conflicts.<\/span><\/p>\n Research specifics on recent comparable merger successes and lessons learned for unique operational or financial considerations based on industry-specific integration complexity.\u00a0<\/span><\/p>\nAnalyze your merger’s financial feasibility in 12 simple steps<\/strong><\/h2>\n
Step 1: Calculate Synergy Benefits and Costs<\/b>\u00a0<\/span><\/h3>\n
Step 2: Prepare pro forma financial statements<\/b><\/h3>\n
Step 3: Model the best and worst-case scenarios.<\/b>\u00a0<\/span><\/h3>\n
Step 4: Analyse Human Resource Impacts<\/b><\/h3>\n
Step 5: Consider Legal and Regulatory Hurdles<\/b>\u00a0<\/span><\/h3>\n
Step 6: Review Geographic Footprints<\/b>\u00a0<\/span><\/h3>\n
Step 7: Verify technology compatibility<\/b>\u00a0<\/span><\/h3>\n
Step 8: Conduct market research on new combined offerings.<\/b>\u00a0<\/span><\/h3>\n
Step 9: Define Leadership Selection<\/b>\u00a0<\/span><\/h3>\n
Step 10: Review Historic M&A Sector Trends<\/b>\u00a0<\/span><\/h3>\n
Step 11: Set realistic timelines.<\/b>\u00a0<\/span><\/h3>\n