Merger
If a company you have invested in is not performing well, a merger can be good news. A merger may provide a nice way out for an investor who is strapped with an under-performing stock. What’s more, having knowledge about lesser-known benefits to shareholders can allow you to make sound investing decisions with regard to mergers. At The Edge, our industry-leading investment research capabilities can provide this information.
The Edge | What is a Merger?
Mergers are known as deals that unite two existing companies into one newly named company. This could happen because of a mutual agreement to expand into new growth segments, gain substantial market share, or expand the reach of a company (may be from a global perspective). In many cases, mergers occur to create value and please shareholders. Here is a quick look at some major types of company mergers:
- Conglomerates: Firms under this type of merger do not need be involved in similar business activities.
- Product extensions: Merging two firms to acquire additional products and services.
- Horizontals: Merging two companies in a similar market sector to increase market share and more.
The Edge | Why You Need Actionable Intelligence About Mergers
The merger of two separate enterprises may cause substantial volatility in the stock price of both the target firm and acquiring firm. Shareholders from the acquiring company normally experience a temporary drop in share value in the days that lead up to the merger.
During this period, shareholders of the target company may see a rise in share value. After the merger is complete, the stock price of the newly formed organization is expected to be higher than both the target and acquiring firms. With adequate research, you can determine the likelihood of this being the case.
Next, actionable intelligence regarding mergers is needed as investors should be well aware of the circumstances of a buyout. You should get to know the nature of the merger, the types of benefits that you receive as a shareholder, and which firm has more control over the deal.
All in all, the golden question you want answered might be about how you can profit from the merger. At The Edge, this is what we are trained to do; to provide you actionable insights that benefit you as an investor.
The Edge | Why Choose Us for Merger Research & Analytics?
Founded in 2005, The Edge is a reputable research provider that offers timely, insightful, and independent analysis and market intelligence to investors who are interested in mergers and more. Our team of core analysts works tirelessly to deliver unparalleled insights that our clients make sensible investment decisions. We have been in the business for more than a decade, and we serve both the U.S. and UK markets. Since our inception, we have built an accountable track record of providing significant ROI to our clients and achieving a +8.5% alpha.
If you are looking to get high conviction recommendations pertaining to mergers, including both financial and non-financial considerations, do not hesitate to contact The Edge team today!