How To Conduct A Merger Or Acquisition

This how to conduct a merger or acquisition template has 5 pages and is a MS Word file type listed under our legal agreements documents.

Sample of our how to conduct a merger or acquisition template:

EXECUTING A MERGER AND ACQUISITION STRATEGY The purpose of this General Merger & Acquisition (M&A) Strategy document is to guide you through the general process a buyer follows in conducting a successful company merger or acquisition. Explaining M&A: M&A is a general term to describe the process two or more companies undertake that results in the consolidation of the assets of all involved companies. The terms "merger" and "acquisition" are often considered interchangeable. However, they do refer to different things. In a merger, two or more companies combine to create a new legal entity. They may do this using the name of one of the companies or they may create a new brand for the merged entity. In an acquisition, one of the companies purchases any others involved in the transaction. Still, the general procedure for each is similar. This document provides the process for the buyer's side of an M&A. Strategic Procedure: Create an Acquisition Strategy As the acquiring company or the main driver of a merger, you must develop a clear and concise idea of what the M&A will accomplish for your organization. Ask yourself what the business purpose is. This may vary, depending on the nature of the M&A. In some cases, the process allows you to reduce competition in your niche. It may help you to strengthen your brand or gain access to new product lines. In some cases, an M&A may simply increase your revenue or profits. In addition to figuring out the deal's ultimate purpose, you will use this opportunity to outline potential financing strategies. Set Your Search Criteria Here, you set the criteria you'll follow for identifying potential partners in the deal. What key features and characteristics must a business have for you to want to conduct an M&A with it? Does location play a factor? What should the other company's profit margin look like? Consider which criteria align with your acquisition strategy and make them the basis of your search. Compile Your Company Database With your search criteria solidified, compile a list of all of the companies you believe match the criteria. This is not as simple as it sounds. In addition to listing businesses based on their adherence to your criteria, you must also consider the willingness of the owner to sell or merge. Locating the perfect company for an M&A means little if the owner doesn't want to be a part of the transaction. Evaluate Your Database Examine each of the businesses in your database and evaluate them against your search criteria, acquisition plan, and the potential desire of the owner for an M&A. Create a ranked list, with the top companies being those that are most likely to want to be involved in the venture. Initiate Conversations Begin making contact with the organizations that meet your criteria and are most likely to provide good value in an M&A. You do not attempt to start the merger or acquisition here. These initial conversations focus on gathering more information about the company, thus ensuring you illuminate any blind spots found during initial research