The best deal structures invariably involve detailed workflows: Mapping out the process in advance is the best way to ensure that the transaction achieves the goals inherent in the company’s M&A strategy while ensuring that deal participants have an insight on how the deal will play out.
A Suggested Step-By-Step Guide on the M&A Deal-Making Process:
Develop a Master Plan
Divide the M&A process into short-duration projects that sharpen the focus of the deal participants. Shorter-duration projects increase the chances of success and maintain momentum.
The Pre-Deal Phase
Develop a business strategy that defines your company’s overall objectives, capability gaps, priorities and potential areas in which M&A can add value.
Putting Together a Deal Team
Put together an effective deal team with complementary skill sets to have diverse viewpoints.
Front-End Integration
Integration is often thought of as a post-deal process, but it should form part of initial due diligence. Asset integration forms the critical infrastructure of any M&A process.