MGI Malta has over the past few years been involved together with
other professionals, in merger and acquisition activity. We offer
the performance of due diligence processes, culture audits and
gap analysis so as to facilitate the stitching together of two
entities. We can also assist in the valuation of acquisitions in
order to evaluate the synergy gains, normally described as 2+2=5.
Our method of explaining the gains from merger activity is using
the derivation 1=5-(2+2). The 1 represents the gain, the 5 represents
the value of the merged firms and each of the 2’s represent
the value of the individual firms before the merger. The merger
negotiations will needless to say, determine which shareholders
get what, of the 1. This should bring out the importance of the
proper application of finance theory in the valuation procedures.
MGI Malta
• Zabbar Road 381 • Fgura PLA16 • Malta
T +356-2180 2044 • F +356-2167 5418 • E