Buy Side Transaction Process

With careful planning and an understanding of the buy side transaction process, acquirers can find and win quality targets.

Determine M&A Strategy

• Management objectives
• Market analysis
• Competitive analysis
• Investment hypothesis
• Alignment with business model

Timing: 1-4 weeks

Identify Targets

• Research & develop criteria
• Size
• Industry
• Geography
• Provide preliminary target list
• Solicit interest from selected targets

Timing: 2-4 weeks

Vet Interested Targets

• Financial performance-past & forecasted
• Customer attractiveness/concentrations
• Vendor concentrations
• Systems & processes
• Capital expenditures
• Explore synergies
• Determine targets to move forward

Timing: 4-8 weeks

Pre-LOI Due Diligence

• Determine deal structure and price
• Identify financing sources
• Negotiate key terms
• Hold management meetings
• Tour facilities
• Perform detailed valuation analysis
• Investigate integration costs
• Execute LOI

Timing: 3-4 weeks

Post-LOI Due Diligence

• Evaluate quality of earnings
• Review operations
• Review human resources
• Assess environmental issues
• Draft transaction documents
• Plan integration

Timing: 6-12 weeks

Close

• Execute agreements
• Wire proceeds
• Announce to employees
• Begin integration process