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What to expect - Mergers & Acquisitions


It is not a secret that great deal of mergers and acquisitions fail due to various reasons. The whole process is important and takes time but it is equally important to know what comes after. Success depends on how company handles many responsibilities that come with new situation. New corporate structure, reallocation of resources and becoming acquainted  with new customers are just some of the things that you will need to manage. It is not unusual for a company to hire a third party to help them smooth transition.

When CEO and board of directors decided that they want to acquire or merge with particular company they will usually start with tender offer. It is permitted to buy up to 5% of outstanding shares of the company without having to file with SEC. If that number is bigger it is mandatory to file with SEC, disclosing number of shares in possession and if there is intention to acquire the company.  With help from financial advisers final price for the company will be offered that can be paid in cash, stock or in both. After letter of intent is sent buying company starts with due diligence phase.

After target company has reviewed tender offer it can respond in three ways, to accept the offer, negotiate or reject the offer. After two companies have agreed on terms of the offer transaction is made. Transactions made with stock are most common because paying with stock is not taxable. When the deal is closed investors receive new stock in their portfolios.

Mina Mar Group will guide the whole process for you and ensure that you can concentrate on developing your core business. Here the things that you can expect during the process:

1. Following holding a discussion with you, the management of MMG will hold a meeting to decide whether we are certain of success as regards your project. The availability of our funding and distribution partners to provide a fund for the project of an existing client will determine if we are going to work on the project or not. A financial model, business plan, PowerPoint files, acquisition target data, and executive summary are the things the client will be requested to submit.
2. If our decision is to work on the project, there will be an issuance of an agreement that shows the deal points and the process such as the completion time for IPO process and deliverables.
3. On average, it takes 4 to 6 months to complete the process based on the SEC. We are professionals at making sure that only a few questions are raised by the SEC; hence, making the process fast. Also, due to our extant public shells at MMG, there can be a reduction of the timeline.
4. Fees: Mina Mar Group provides all fees required for the IPO process and reverse merger. This could be around $500,000 to $1.5 million.
5. Ownership of the company: a controlling interest of about 51% to 70% of the authorized shares in the company will be maintained by the Mina Mar Group.
6. Concerning the board seats, a controlling interest will be demanded by MMG.
7. Standard commission of about 10% to 20% of any increase in capital will be taken by MMG.
8. To guarantee fiscal efficacy, a Chief Financial Officer will be put in place by Mina Mar Group.
9. The CEO of the company will still be in control while be paid salary and compensations based on the market rate.
10. Based on their abilities and skills, we may ask other members of the management team to stay on board to manage the company.
11. Upon raising the capital, capital will be provided by Mina Mar Group to ensure acquisitions that will ensure the company’s profit and revenue growth.
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Location: West Palm Beach, FL, USA

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