The process behind mergers and acquisitions is a fairly complicated one, and it can often take several months or several years to completely wrap up.
Below is a description of that process, and in virtually all cases, companies will undertake this same process, or one which is very similar, when undergoing mergers and acquisitions.
Develop a clear acquisition strategy
Before embarking on any kind of merger or acquisition, your company needs to have a clear idea of what it wants to gain by making an acquisition, i.e. what the business purpose is. Next, you should decide on what the key criteria will be for evaluating potential target companies, and then these criteria should be applied when actually searching for targets.
When you do find some potential candidates, you’ll have to reach out to them to get additional information, and to find out if they’re interested in being acquired. Assuming these initial talks go as expected, there will then need to be a thorough exchange of information, and complete financial analysis of any target company being considered.
Steps for closing the deal
The next phase of the process is to negotiate terms for the merger or acquisition, and to embark on a period of due diligence, once an offer has been accepted. During due diligence, everything about a candidate company will be carefully reviewed, and if all is considered favorable, a contract will be prepared for the sale. At this point, financing for the merger or acquisition will come into play, and the acquisition deal will be closed. The final step in the process is for management teams from both companies to get together and work toward the process of merging the two companies.
Funding for mergers and acquisitions
If you’ve been considering a merger or acquisition, but lack the funding to proceed with the transaction, we may be able to assist. Contact us at Safe Harbor Commercial Capital, so our financial specialists can explore some possibilities with you on funding your project.