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Chapter 2 | Processes

Processes are supported by culture – with strong cultural foundations in place a deal team can move towards improving their M&A processes.

M&A teams that take the time to implement and adhere to best practice processes can improve their deal-making capabilities on an on-going basis – therefore increasing the likelihood of M&A becoming a core competency of the organization. Of course, no deal is the same and it is impossible to foresee all eventualities that may arise across the deal life-cycle. However, having a number of reliable standardized processes in place as part of an M&A Playbook (essentially a deal roadmap/game-plan) can drive project efficiencies, help a deal stay on course and ensure timely course correction or issue resolution when unexpected events arise.

The following processes are central to Smart M&A:

  • Strategy – ensuring M&A strategy aligns with the overall organizational strategy;
  • Target Selection & Evaluation – identifying the best targets;
  • Business Case – developing a compelling deal business case;
  • Due Diligence – performing due diligence in an efficient way while addressing risks and being prepared to “walk away”;
  • Transaction: Valuation & Negotiations – negotiating a transaction with risk mitigation in mind;
  • Integration & Minimizing Value Erosion – ensuring seamless linkage of risks from due diligence to integration + planning and execution of post-merger integration so as to capture synergies in a timely manner;
  • Lessons Learned – ensuring lessons learned are captured and acted upon.
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