Three parallel processes for the buyer

In general, the buyer is involved in three parallel processes: 

  • transaction process  aiming at  transfer of ownership
  • financing process to obtain financing for the transaction
  • integration process, ie. preparing to take over the target business and integrate it into their existing company. 

Mergers and acquisitions are laborious projects which require a lot of time and resources from all parties. Each project is different, which means the processes also vary on a case-by-case basis. 

Process from the seller’s point of view
Process from the buyer’s point of view
Financing negotiations

Preparing for integration

Ultimately, the success of a merger or an acquisition comes down to what happens to the business after the transaction. Successful deals are based on sound business logic and the fact that the target company is compatible with the buyer’s existing business and complements it. This means you should start planning on how to integrate the operations, management and staff of the two companies already during the transaction negotiations. At the end of the day, business is all about people so you need to be able to retain the talent and key persons of the target company after the merger. It’s important to create an atmosphere of trust and keep the employees updated on the process when the time comes. Your management team should be prepared to spend a lot of time and effort on the integration process, ironing out the practical arrangements and leading the transition. If you have bought other companies in the past, you may already have an established process for this.