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    Buy Side Transaction Process

    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

    Largest Transactions Closed

    • Target
    • Buyer
    • Value($mm)

     

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