Business Acquisition Process and Outcomes | MBA Business Analytics Bangalore

Posted by Dr. Samiya Mubeen On 22/10/2022 10:10:24

The mergers and acquisitions (M&A) process has many steps and can often take anywhere from 6 months to several years to complete. In this guide, we’ll outline the acquisition process from start to finish, describe the various types of acquisitions (strategic vs. financial buys), discuss the importance of synergies (hard and soft synergies), and identify transaction costs. MBA in HR Colleges in Bangalore

M & A deal process includes:

  1. Develop an acquisition strategy – Developing a good acquisition strategy revolves around the acquirer having a clear idea of what they expect to gain from making the acquisition – what their business purpose is for acquiring the target company (e.g., expand product lines or gain access to new markets)
  2. Set the M&A search criteria – Determining the key criteria for identifying potential target companies (e.g., profit margins, geographic location, or customer base)
  3. Search for potential acquisition targets – The acquirer uses their identified search criteria to look for and then evaluate potential target companies
  4. Begin acquisition planning – The acquirer makes contact with one or more companies that meet its search criteria and appear to offer good value; the purpose of initial conversations is to get more information and to see how amenable to a merger or acquisition the target company is
  5. Perform valuation analysis – Assuming initial contact and conversations go well, the acquirer asks the target company to provide substantial information (current financials, etc.) that will enable the acquirer to further evaluate the target, both as a business on its own and as a suitable acquisition target
  6. Negotiations – After producing several valuation models of the target company, the acquirer should have sufficient information to enable it to construct a reasonable offer; Once the initial offer has been presented, the two companies can negotiate terms in more detail
  7. M&A due diligence – Due diligence is an exhaustive process that begins when the offer has been accepted; due diligence aims to confirm or correct the acquirer’s assessment of the value of the target company by conducting a detailed examination and analysis of every aspect of the target company’s operations – its financial metrics, assets and liabilities, customers, human resources, etc.
  8. Purchase and sale contract – Assuming due diligence is completed with no major problems or concerns arising, the next step forward is executing a final contract for sale; the parties make a final decision on the type of purchase agreement, whether it is to be an asset purchase or share purchase
  9. Financing strategy for the acquisition – The acquirer will, of course, have explored financing options for the deal earlier, but the details of financing typically come together after the purchase and sale agreement has been signed
  10. Closing and integration of the acquisition – The acquisition deal closes, and the management teams of the target and acquirer work together on the process of merging the two firms

Mergers and acquisitions are used as instruments of momentous growth and are increasingly getting accepted by Indian businesses as a critical tool of business strategy. They are widely used in a wide array of fields such as information technology, telecommunications, and business process outsourcing as well as in traditional business to gain strength, expand the customer base, cut competition or enter into a new market or product segment. Mergers and acquisitions may be undertaken to access the market through an established brand, to get a market share, to eliminate competition, to reduce tax liabilities or to acquire competence or to set off accumulated losses of one entity against the profits of another entity. MBA business analytics Bangalore

The process of mergers and acquisitions in India is court driven, long-drawn, and hence problematic. The process may be initiated through common agreements between the two parties, but that is not sufficient to provide legal cover to it. The process of completing a merger can be cumbersome. With so many steps to take before, during, and after the merger and tricky timing issues every step of the way, it’s important to have the right support. MBA colleges in Bangalore list

Whether at the beginning stages of due diligence or the high-pressure stages of closing, Corporation provides the assistance that private equity firms and M&A attorneys count on to finalize the deal. Count on one-stop-shop seamless support across local and international jurisdictions. Our end-to-end project management services are provided through accountable specialists who partner with you every step of the way. Whatever size of your enterprise or line of business, has the global resources you need to meet your critical M&A compliance needs.

These steps, culminating in the development of a new, unified purpose, ensure that leaders are not just in step with employees – this process enables leaders to strategically adjust and manage the organisational culture to best support the success of the venture.

Successfully integrating a new acquisition or merging disparate entities can be among the most challenging projects many leaders will ever face. By prioritising the people and setting the cultural expectations, you’ll not only increase the chances of a successful outcome, but you’ll also increase the likelihood that the experience is a rewarding one for the whole team.

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