The Mergers and

Acquisitions
Process
 The Mergers and Acquisitions Process
• Board decide to make an acquisition
• Evaluate opportunities
• Decide on a Target
• May acquire shares quietly in the
open market
• <5% before having to file with the
SEC
• Declare shareholding and intent -
buy the company or hold investment
The Mergers and Acquisitions Process
• Buyer works with financial
advisers
• Decides on a price it is
willing to pay
• Approach made to the
Target Company
• Tender offer made business
press to shareholders for
their stock
The Mergers and Acquisitions Process
• Letter of Intent sets out the
proposed terms of the deal
• Non Binding and Binding
provisions
• Subject to Due Diligence
• Subject to Negotiation
• Confidentiality may be
included in private deals
The Mergers and Acquisitions Process
• Target Company responds
• Accepts the terms of the Offer
• Negotiates the terms, the
price, the form of
consideration, timing,
• Consider seeking alternative
offers from other buyers
• Approach Private Equity
Investors
The Mergers and Acquisitions Process
• If large enough, the deal
may require the approval
of the regulatory
authorities as well as the
SEC
• Stock Exchange,
Takeover Panel,
Monopolies and Mergers
Commission in the UK
The Mergers and Acquisitions Process
• Closing the deal
• Deal agreed and signed
• Consideration paid to
selling shareholders
• Cash for Stock
• Stock for Stock
The Mergers and
Acquisitions
Process