It is easy to be caught up in the excitement surrounding mergers and acquisitions. However there are numerous important store sensitive data steps a business must take to successfully complete an acquisition. A successful M&A requires careful planning, effective communication and meticulous execution.
Start with 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 consist of members of the executive management as well as boards of directors and external advisors who have prior experience in acquisitions. This team will determine the goals of the sale, determine potential targets, and evaluate potential buyers.
Conduct an in-depth due diligence. It is typical for buyers to request extensive documentation and speak with many people before finalizing a deal. The buyer’s review can take several months so sellers must be prepared to give information as quickly as they can and help speed up the process. The seller should seek final board approval when the due diligence process is completed.
Develop integration plans. It is essential for the buyer to have an executive team member who can dedicate a significant amount of time and energy to the integration of the acquired company. The person in charge must possess the required expertise, resources and ownership in order to ensure that the transition is successful.