The M&A process.

    
News:
 
 
 
 
Papers:
 
 
 
Useful links:
M&A overview.
Some do's and don't's in M&A
 
Innovation:
 
 
The Merger & Acquisitions processes are similar, usually very time consuming for all senior managers and sometimes difficult for both parties involved. Once started this will require focus and resources to the conclusion of the transaction, once commenced, the need is for continuity and speed. Mk4 acts as the additional temporary resource supporting the SME through the process.
  
   
 

Overview:

    
 
This process has two distinct phase pre and post acquisition, the key tasks within each phase is as follows;
  
   
 

Pre-acquisition phase:

      
 

From agreeing the M&A objectives, to identifying possible targets, quantifying the targets, preparing the documentation, negotiating the transaction  and performing an initial due-diligence to a full due-diligence, before completing the transaction. A note, the due diligence process, could involve people from functions for both parties as diverse as; Lawyers, Accountants, Financiers, Suppliers, HR, IT, Valuer, OH&S, Insurance, Property and many more.

  
   
   
  Post-acquisition phase:  
 

Involves, checking financial assumptions, supporting the SME on communication to customers, suppliers, media etc, etc.
Verification of the implementation plan, people commitment, revenues, sales and marketing plan.

  
   
 

Summary of Key tasks.

  
   

Identifying objectives;

  

Preparing for the M&A:

  
   

- Understand  seller’s objectives

- Assemble the team

- Perform initial  due diligence
 

- Determine preliminary range of values

- Prepare Confidential Memorandum and related materials

- Finalize contact strategy
 
       
       
   

Search for targets:

  

Negotiating the transaction:

  
   

- Enter the market

  

- Presentation of mgmt.

  
   

- Solicit proposals

  

- Negotiate letters of intent

  
   

- Evaluate proposals

  

- Select Purchaser

  
   

Implementing the M&A.

- Manage detailed due diligence

  
- Negotiate acquisition/ merger agreement  
- Close transaction  
   
       
       
       
             
© Mk4 2005