Mergers & Acquisitions
WHAT CAN HELP MAKE MERGERS & ACQUISITIONS SUCCEED?
When existing business owners or the company’s management (potential acquirer) decides to expand their business by purchasing another company (target company), it is necessary to carry out the purchasing or acquisition process in such a way as to ensure the proposition of an appropriate offer to the sellers of the target company.
Successful M&A deal requires a well-defined strategy and expert’s experiences as a client’s guarantee. For this purpose, MPC Consulting carries out all substantive and legal actions regarding the implementation of the M&A process as defined below. A proven process for evaluating and executing M&A includes several essential activities that occur as sequential stages.
A DESCRIPTION OF EACH ACTIVITY IN THE PROCESS IS AS FOLLOWS
1. Once the target of the purchase or investment opportunity is clearly defined, the strategy of the target company’s acquisition process is created:
- The target company’s liabilities (capital and financial liabilities / debts to be purchased) are precisely defined;
- The company’s strategic plan is drawn up as a commitment to a buyer to achieve specific goals;
- The consultant, together with the client (buyer), determines the most appropriate buying strategy.
2. When signing a non-disclosure agreement (NDA), the documentation (economic and legal part) is obtained from the seller of the target company. When signing a non-disclosure agreement (NDA), the documentation (economic and legal part) is obtained from the seller of the target company.
3. On the basis of the documentation reviewed, the non-binding offer shall be awarded to the seller of the target company.
4. Following is the implementation of the company’s due diligence and the valuation of the target company with the purpose of determining the price or equity ratio of the target company.
5. Terms and conditions of a binding offer shall be defined and negotiated.
6. The consultant shall perform the final actions (legal and financial) for the conclusion of the contract and the execution of the transaction.