How to Decipher Mergers and Acquisitions Document Process


Mergers and acquisitions are transactions in corporate finance in which the ownership of a company or a business unit is transferred to another company or organization. A merger is a transaction in which the two merging organizations are consolidated into one, while an acquisition is a process during which one entity takes ownership over the other. The M & A involves lots of distinct steps on the side of either participant:

  • Steps on the buyer’s side – the process starts with the acquisition criteria, followed by developing the acquisition strategy and identifying potential targets. The next phase is to establish contact with the candidates, followed by the valuation of the targets to determine suitability. After this, the negotiations and the drafting of the necessary contracts can start;
  • Steps on the seller’s side – the first step in how to sell my business should be identifying goals to be achieved through the merger or acquisition and preparing the documentation necessary for presenting to the company. After this, the contact with the potential buyers is established to receive bids. Then you and the other party enter the negotiation phase. In the final stage, the definitive agreement is drafted, and the deal is completed.

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