It is easy to get caught up in all the excitement around mergers and acquisitions. But there are a number of crucial steps a company has to follow to successfully complete an acquisition. The reality is that the success of an M&A process requires a lot of time and careful planning, effective communication and careful
It is easy to get caught up in all the excitement around mergers and acquisitions. But there are a number of crucial steps a company has to follow to successfully complete an acquisition. The reality is that the success of an M&A process requires a lot of time and careful planning, effective communication and careful execution.
Start with a plan. Many companies advance myriad reasons for pursuing an acquisition–purchasing international scale, filling portfolio gaps, building a third dataroomplace.blog/top-10-finance-bloggers/ leg of the business–but the most successful acquirers have specific and well-articulated ideas about how their acquisitions will create value.
Establish a team. The M&A team should consist of members of the executive management and boards of directors as well as external advisors who have previous experience in acquisitions. This group will collaborate to establish the objectives of the sale, create the targets for potential candidates, and screen candidates.
Conduct an in-depth due diligence. It is standard for buyers to require extensive documentation and to interview many people before making a decision. It could take months for the buyer to finish their assessment, therefore sellers must be prepared to share information promptly and assist in the process as much as it is possible. The seller should seek final board approval immediately after the due diligence process is completed.
Develop integration plans. It is crucial that the buyer has a team leader capable to devote significant time and effort to the integration. This person must possess the necessary expertise and resources, as well as the ownership for that the transition is successful.
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