It is easy to be caught up in the excitement surrounding mergers and acquisitions. But, there are many important actions that a company needs to take to successfully complete an acquisition. A successful M&A requires careful planning, effective communication and a meticulous execution.
Start 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 boards of directors and management of both the target and acquiring companies, along with outside experts who are experienced in acquisitions. This group will collaborate to establish the objectives of the sale, establish the targets for potential candidates, and screen potential buyers.
Conduct an in-depth due diligence. It is typical for buyers to request extensive documentation and to interview many people before concluding a deal. The buyer’s assessment can be lengthy therefore sellers must be prepared to disclose information as quickly as they can and help speed up the process. As soon as the due diligence process has been completed the seller must seek final board approval to move forward with the purchase.
Create integration plans. It is important that the buyer has a team leader capable to devote significant time and effort to the integration. This person must have the necessary skills with the right resources and management to ensure that the transition is smooth and efficient.
Laisser un commentaire