In the lifecycle of a company, the prospect of mergers and acquisitions is often a part of the company’s growth and development. The M&A process is complex, and it can be a significant challenge for smaller companies.
- The first step is to identify a real need to initiate a process of acquiring or selling a company. It is also essential to identify experienced candidates who can negotiate a transaction. Leading mergers and acquisitions advisory firms will work diligently to help the client make the right choices for their company.
- The second step is the presentation of the parties, the opportunity, and the business plan, preferably in the form of objective reports prepared by specialized consultants, supplemented by visits and meetings with the target company’s management.
- The initial, non-binding offer comes next. It is made based on an evaluation, which ensures that there are the initial premises of a transaction acceptable to both parties.
- The next step is the due diligence process, which when the two parties analyze in detail the possibility of a transaction and accurately identify the main risks related.
- What follows next is the final offer and the contractual negotiations regarding legal aspects.
Once the transaction documents have been signed, it may take a while until the transaction is complete and the transfer of ownership is undertaken.