Business Articles

Business Article: Taking over or merging with a company in Turkey (by Semiha Unal)

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SEMIHA ÜNALWhen you start a doing business in Turkey it can be for organic or inorganic growth of your company activities. With organic growth you are expanding your business channel by means of finding a Turkish partner in the same sector, hire someone to launch or sell your products on the Turkish market or set up an entity in Turkey for growing your customer base, reinvesting profits in new assets for greater income and improving productivity to increase your bottom line.

You can grow your company through inorganic growth by merging with another  company or buying another local company as well. This can give you a larger customer base, a new channels of distribution that can result in accelerated growth.

So, mergers or acquisitions can be very effective ways to achieve a rapid growth of your enterprise, but are also complicated processes.

To give you an insight of what is needed during the M&A process in general, I can mention the following:

▪   country-specific knowledge of your country as well as Turkey

▪   experience with take-over projects from the buyer’s as well as the seller’s perspective

▪   broad knowledge of – and experience with -corporate financial advice

▪   experience with capital provision and international business development

▪   analyses of the markets and of its major players

▪   finding suitable take-over or merging partners

▪   conducting negotiations for and on behalf of the client

▪   drawing up declarations of intent and agreements

Depending on the project, the duration of a take-over or merger project may range from 4 to 14 months. It all starts with drawing up an inventory in the areas of strategy, finance and operational coordination, as this is the basis on which the partners will have to agree before further steps can be taken.

Having a good knowledge of the Turkish culture, an extensive and high quality network and a good command of the local language are indispensable factors for a take-over or merger process to be successful. Therefore it is crucial to have the support of a partner or a consultant in Turkey who has a thorough knowledge of the local business culture, easy access to the relevant public and private institutions, an extensive network at his (or her) disposal and who – last, but not least – has a profound understanding of your wishes and needs.

For these kind of projects we work with a team of four business and management professionals, each with an average of 15 years of relevant business experience, an extensive network in various branches of industry, and the experience of guiding and supervising several successful take-over and merger projects.

In case a take-over or merger candidate still has to be found, we will bring in our extensive networks to find and select suitable candidates and establish the initial contacts. This is precisely where our expertise comes in: we know the Turkish business culture, have the required skills to establish valuable business contacts and we know the market.

Personal guidance in your entire take-over or merger project by a business professional

BST’s support in your take-over or merger project implies that you will be in constant and close contact with a professional business professional who, speaking both languages, knowing both cultures, being aware of the pitfalls and knowing how to avoid them, will provide guidance and advice during the entire project, establish the initial contacts and, if necessary, will conduct the negotiations for you.

In addition, we have the skills to provide post-merger integration, which is a crucial success factor in the phase immediately after a take-over or a merger.

My next article will be about a business case concerning an HR support service for such a post-merger integration project.

 Semiha Ünal

‘Business Support Turkey’

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