How to structure a successful M&A process

Navigating an M&A process, whether it involves a full exit, a partnership deal, or raising capital, is often a complex and time-consuming task. By understanding the different parts of the process and hiring an experienced advisor like Merge, you can ensure the deal is executed smoothly and efficiently. Here are the various steps in a typical M&A process and how Merge contributes to each phase.

Preparation

Description: This phase involves gathering all relevant information about the company, identifying the goals of the deal, and planning the process ahead. Investors often expect detailed financial information and a structured data book or financial plan for the coming years.

Merge contributes by: We assist in structuring and organising all necessary documentation and setting realistic goals and expectations for the deal. We help model and develop a financial forecast that meets investors’ expectations.

The M&A process is complex, and handling all its aspects correctly requires extensive experience. Merge brings experience and expertise, allowing you to focus on your core operations and what you do best.

Creation of IM and teaser presentation

Description: The IM (Information Memorandum) and teaser documents are crucial in presenting the company to potential buyers or investors. The teaser is a brief summary of the company and the investment opportunity, while the IM provides a deeper insight into the business.

Merge contributes by: We design professional and persuasive IMs and teasers that highlight the company’s strengths and potential, increasing its attractiveness to potential buyers. We ensure that all expected information is included in the materials to avoid any unwanted surprises.

Marketing and investor/buyer contacts

Description: In this phase, potential investors or buyers are identified and contacted. The marketing strategy is tailored to reach the right target audience.

Merge contributes by: We leverage our extensive network and experience to identify and engage the most relevant and interested parties. Merge has a vast network among both international financial investors and strategic acquirers. We have established technical tools and methods to ensure your company is evaluated by the right decision-makers and given proper consideration.

Indicative bid

Description: Potential buyers submit indicative bids based on the information they have received. These bids are non-binding but provide an indication of price and terms. Generally, investors and buyers do not deviate from indicative bids unless negative information emerges, as it can damage their reputation in the industry.

Merge contributes by: We analyse, compare, and negotiate the indicative bids to ensure you receive the best possible selection and prepare for the next steps in the process in consultation with you as the owner.

Management presentation

Description: The management presents the company to potential buyers to provide a deeper understanding of the business and its future prospects.

Merge contributes by: We prepare the management team for the presentation, ensuring that all key points are covered and that the presentation is persuasive and professional.

Due Diligence

Description: The buyer conducts a thorough review of the company to verify all information and identify any potential risks. The information is often gathered in a digital data room, known as a VDR (Virtual Data Room), where buyers and investors can ask questions through a Q&A function.

Merge contributes by: We structure the data room and coordinate the due diligence process, answering questions and ensuring all relevant information is provided in an organised manner. Thanks to our thorough preparation, we can propose answers to most questions without needing input, which can then be approved by you as the owner.

Contract negotiation

Description: After due diligence, the final contract terms are negotiated, including price, payment terms, commercial terms, and other specific conditions.

Merge contributes by: We lead the negotiations in close collaboration with the appointed lawyer to ensure the terms are favourable and that all legal and financial aspects are covered by the agreements.

Signing and closing

Description: The deal is finalised through the signing of agreements and the transfer of the company, including payment and the handover of control.

Merge contributes by: We ensure, together with the appointed lawyer, that all necessary documents and formalities are in place for the deal to be completed smoothly and without obstacles. Traditionally, the seller’s advisor (Merge) arranges a closing dinner where the seller and buyer celebrate the deal together and socialise in a relaxed setting.

Summary

Each step in the M&A process requires careful planning and execution. An experienced advisor like Merge can make a significant difference by providing expertise and support at every stage, maximising the chances for a successful deal. Contact Merge today to discuss how we can assist you throughout the entire M&A process and ensure the best possible outcome.