It is easy to become caught up in the excitement surrounding mergers and acquisitions. But, there are many important steps a business must follow to successfully complete an acquisition. In reality, a successful M&A process takes time and requires thoughtful planning, effective communication, and meticulous execution.
Begin with a strategy. Many companies advance myriad reasons for pursuing an acquisition–purchasing international scale, filling portfolio gaps, building a third leg of the business–but the most successful acquirers have specific and well-articulated ideas about how their acquisitions will create value.
Form an organization. The M&A team should consist of members of the executive management, boards of directors and external advisors who have expertise in acquisitions. The team will work to determine the goals of the sale, develop target candidates, and evaluate potential candidates.
Conduct an in-depth due diligence. Buyers usually request extensive documentation and may interview several individuals prior to finalizing the deal. The buyer’s assessment can take a while, so sellers should be prepared to provide information as soon as they can and to facilitate the process. As soon as the due diligence process has been completed the seller must request the final approval of the board to move forward with the dataroomplace.blog/successful-acquisition-management-process/ deal.
Create plans for integration. It is crucial that the buyer has a team member who is capable to devote significant time and effort to the integration. The person in charge should possess the right skill set, resources and ownership to ensure an easy and smooth transition.