It is easy to become caught up in the excitement that site around mergers and acquisitions. However there are numerous important steps a business must take to complete and successfully complete an acquisition. The fact is, a successful M&A process requires a lot of time and careful planning, effective communication, and meticulous execution.
Make a plan. 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 include members of the executive management, boards of directors and outside advisors with previous experience in acquisitions. This group will work to determine the goals of the sale, determine potential targets, and screen potential buyers.
Conduct an in-depth due diligence. It is typical for buyers to require extensive documentation and speak with many people before concluding a deal. It can take months for buyers to complete their evaluation, so the seller must be prepared to share information promptly and help facilitate the process as much as is possible. The seller should seek final board approval when the due diligence process is completed.
Create plans for integration. It is vital that the buyer has a team leader capable of dedicating significant time and effort to the integration. The person in charge should possess the appropriate skills and the resources to ensure an easy and smooth transition.
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