Merger and acquisition deals are a nerve cracking process even if it be the simpler one. It takes a lot for two independent enterprises to join forces, identify and eradicate redundancies, agree on prices and strategy, and maintain employee productivity. Though there are many hurdles that could trip up the process, a successful integration should possibly take place between three to six months.
There is no official playbook on executing an M&A deal. Every party who is involved in the process needs to navigate various steps before the deal can be realized.
It starts with the development of a detailed growth/portfolio strategy. Considered as the pre-M&A phase, many deals get tripped up here. A growth strategy is the foundation for future development of any organization. Shareholders should be provided with a complete outline in order to avoid any kind of future hassles.
All the accounting processes, messy valuations, market trends, policy reviews and actual nuts-and-bolts of the deal are taken into account in the due diligence step. This is the time when it is determined whether the financial aspects of the deal are going to work or not.
Integration basically aims to deliver expected value and go through the complete procedures of the new company. Merging two different companies doesn’t make any logic unless the final product is more than the total value of two parts. Being the longest phase, it should be the most deadline-oriented.
Execution stage is the most complex as well as risky part of a transaction. All M&A deals possibly run around with the Securities and Exchange Commission (SEC), alienate stockholders or customers, or take too long and fall through.
Those who are looking for best-in-class M&A firm to get their deal done can count on a reputed company like ValleyBiggs. When any business engages ValleyBiggs, they get a benefit of having a team of entrepreneurs, attorneys, M&A Brokers, accountants and executive advisors on their side who ensure their success at the negotiation and closing tables.