Fire Company Mergers & Acquisitions

As an influential and well respected Company within the Fire Fighting Equipment industry, Firetrade.ie  has overseen a significant number of mergers and acquisition within the industry over the past 10 years.

The central tenet behind mergers and acquisitions holds that the merged companies collectively benefit from increased shareholder value and a stronger business model. Naturally this rationale can appeal to companies operating in challenging market conditions and economic climates, in order to ensure survival.

Successful companies will usually seek to buy out companies, creating a more competitive, cost-effective and streamlined operating model. Naturally, eliminating competition, delivers greater market share. Within the fire trade, a merger or acquisition is more commonly due to retirement of a company owner or a company looking to change its business offering or area of specialisation.

Although the term “merger and acquisition” is often used as if inter changeable, the terms merger and acquisition mean distinctly different things. When one company takes over another and clearly establishes itself as the new owner, the purchase is called an acquisition and from a legal standpoint, the target company ceases to exist.

In the pure sense of the term, a merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a “merger of equals.” Usually, one company will buy another and, as part of the deal’s terms, simply allow the acquired firm to proclaim that the action is a merger of equals, even if it’s technically an acquisition. Being bought out often carries negative connotations. Therefore, by describing the deal as a merger, deal makers and top managers try to make the takeover more palatable.

A purchase deal will also be called a merger when both company owners agree that joining together is in the best interest of both of their companies. In each case, the calculations and permutations will differ. Expectations can play a huge part in the process and this is where Jeff has been able to carve a niche. Managing people’s expectations is 90% of the deal, the terms and conditions are the rest.

If you have a need to buy, sell or merge your interests please contact us and we can help guide you through the process to ensure the most advantageous outcome. Everyone should be a winner!