Premium Essay

M&a Process

In: Business and Management

Submitted By ahsan019
Words 1359
Pages 6
The M&A Sales Process
FINA 6222: Mergers and Acquisitions

Agenda
Auction Process Overview Organization and Preparation First Round Second Round Negotiations and Closing
• Stakeholders • Broad vs. Targeted Processes

• Valuation and Due Diligence • Marketing Material and Confidentiality Agreement Preparation
• First Buyer Contact • Initial Bids and Buyer Selection • Management Presentations and Data Room • Final Bids • Evaluate Bids and Select Winning Bidder • Financing and Approvals

Process Map
Seller Retains Advisor and Signs Engagement Agreement Advisor Performs Internal Due Diligence Advisor Prepares Marketing Materials Advisor Approaches Prospective Buyers

Interested Buyers Sign Confidentiality Agreement

Interested Buyers Receive In-Depth information and Submit a Bid

Seller and Advisor Choose Participants in Second Round

Management Presentations and Buyer Due Diligence

Second Bids Submitted

Price and Sale Agreement Negotiated

Deal is Closed

Stakeholders
Seller Incentive: Highest Multiple
• Private Equity Fund • Large Corporate Entity • Entrepreneur

Advisors

Incentive: Highest Fee

• Investment Bank • Legal Counsel • Auditors and Consultants

Buyer

Incentive: Lowest Multiple

• Private Equity Firm • Large Corporate Entity
Auction Process Overview Organization and Preparation First Round Second Round Negotiations and Closing

Broad vs. Targeted Processes
• Broad Process
• • • • •

20/20 rule: generally, 20% of the deal value should not be greater than • Targeted Process 20% of the • Buyer universe is limited to strong strategic fits prospective • Buyers are likely aware that the company is in play buyer’s current • Financial resources are vetted to a greater degree fund

Maximize universe of buyers approached Approach both strategic and financial buyers Designed to maximize competitive dynamics...

Similar Documents

Premium Essay

Communication During the Process of M&a

...White paper Communication during the process of M&A Mergers and acquisitions provide a great opportunity for growth to the organizations. Together the companies can strive for growth and higher profits using smaller amount of resources. However, it is not easily implemented and many factors should be taken in consideration in order for the merger to be beneficial and successful. Studies show different numbers, but according to Harvard Business Review, 70 to 90% of mergers fail and therefore companies incur losses. There are many wrong business decisions that managers can make during this process, but this paper will be focused on internal communication practices that contribute to the failure of a merger or acquisition and give some techniques that will help to communicate successfully. Many organizations ignore the people element in the formation of a new organization. Managers are concerned about the profits and new business strategies and often forget about the fact that employees are the key to the overall success and that the achievement of the business goals depends on every single employee. So therefore, it is essential to keep them motivated and engaged in the new environment. So, what can go wrong and how to make it right? • Merger or acquisition? The abbreviation M&A does not distinguish the difference between the two components: M and A. It implies that both of them are the same. In fact, the two components are completely different in their nature.......

Words: 1361 - Pages: 6

Premium Essay

Capability Studies

...introduction •0. Overview – 0.1. What’s capability index ? – 0.2. Why do we need capability index ? – 0.3. Capability index application in SPC •1. Capability index understanding – 1.1. Basic statistical concept introduction – 1.2. Precision and accuracy – 1.3. Capability index – 1.4. Pre-conditions and condition •2. Capability index application – 2.1. Capability indexes comparison – 2.2. Grades of capability index – 2.3 Capability index vs DPM – 2.4. Sequence to improve process capability – 2.5. Capability index application examples •3. Case study – 3.1. The process for case study – 3.2. Improvement flow 3 Confidential – 3.3. Solder paste printing improvement 3 0.1. What’s capability index ? “Capability index” is a quantitative value to let us know information about a process performance ! It advises us of How stable a process is ! How capable of meeting specification a process is ! 4 Confidential 4 0.2. Why do we need capability index 1. To have a quick understanding of process performance 2. To be able to effectively predict yield, quality level and cost 3. To measure the effects of change in the system with greater speed and reliability 4. To alter specification limits, it will have the data to back up its decision 5 Confidential 5 0.3 Capability index...

Words: 4435 - Pages: 18

Free Essay

Case Study 5: Statistical Process Control

...CASE STUDY 5: Statistical Process Control Ikrom Abdullaev M0158958 Shamil Tlukashaev Chuan Lai Exercise A: Control Charts for Variables Step 1: Gather data Four samples of five observations (launches) each were arranged in tabular form. The mean and range for each sample determined and computed the mean of the means and the mean of the ranges. Data Table SampleNumber | Observation 1 2 3 4 5 | SampleMean x | Sample Range R | 1 | 7.2 | 8.1 | 8 | 8.5 | 9.2 | 8.20 | 2 | 2 | 8.4 | 8.2 | 7.6 | 9.3 | 10.1 | 8.72 | 2.2 | 3 | 10 | 9.1 | 7.4 | 7.9 | 9.4 | 8.76 | 2.6 | 4 | 10.1 | 9.2 | 7.8 | 7.3 | 10.4 | 8.96 | 3.1 | 2.475 2.475 8.66 8.66 (8.20+8.72+8.76+8.96)/4=8.66 (8.20+8.72+8.76+8.96)/4=8.66 (2+2.2+2.6+3.1)/4=2.475 (2+2.2+2.6+3.1)/4=2.475 Step 2: Develop an R-chart Using the data gathered and the appropriate and values, we computed the upper and lower three-sigma control limits for the range. Because the average range for Ris 2.475, to compute we used value for =2.115 according to the table given in the book. =2.115(2.475) =5.234 The result we got is 5.234 To compute we used formula given below =0(2.475) =0 According to table given in the book we already know that =0. So for now we know that =2.115(2.475) =5.234 =0(2.475) =0 We drew an R-chart, after we have tabulated all the numbers in the tables and......

Words: 981 - Pages: 4

Free Essay

Problems

...CHAPTER 4 SI UNIT PROBLEMS SOLUTION MANUAL SONNTAG • BORGNAKKE • VAN WYLEN FUNDAMENTALS of Thermodynamics Sixth Edition Sonntag, Borgnakke and van Wylen CONTENT SUBSECTION Correspondence table Concept problems Force displacement work Boundary work: simple one-step process Polytropic process Boundary work: multistep process Other types of work and general concepts Rates of work Heat transfer rates Review problems English unit concept problems English unit problems PROB NO. 1-19 20-30 31-46 47-58 59-70 71-81 82-94 95-105 106-116 117-122 123-143 Sonntag, Borgnakke and van Wylen CHAPTER 4 6 ed. CORRESPONDANCE TABLE The new problem set relative to the problems in the fifth edition. New 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 5th 1 2mod new New New 3 4 new New new New New 18 27 new new 5 new New 13 new new New New New 22 45 mod 8 12 14 New New New New 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 5th new 19 20 33 mod 37 36 15 30 6 New 32 7 9 34 10 New New 26 39 New 40 New New New New 58 59 60 61 New New New New New 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 5th new new new 43 new New new new New 47 HT 48 HT 49 HT 50 HT mod 51 HT mod 52 HT 53 HT 54 HT 55 HT 56 HT 57 HT 31 mod 11 16 17 23 21 mod 28 29 24 44 35 th Sonntag, Borgnakke and van Wylen The English unit problem set...

Words: 15028 - Pages: 61

Premium Essay

Culture

...MANAGING CULTURAL INTEGRATION IN CROSS-BORDER MERGERS AND ACQUISITIONS Daniel R. Denison, Bryan Adkins and Ashley M. Guidroz ABSTRACT Cross-border M&A has become one of the leading approaches for firms to gain access to global markets. Yet there has been little progress in the research literature exploring the role that culture may play in the success of these ventures. Poor culture-fit has often been cited as one reason why M&A has not produced the outcomes organizations hoped for (Cartwright & Schoenberg, 2006). Cross-border M&A has the added challenges of having to deal with both national and organizational culture differences. In this chapter we review the literature on cultural integration in cross-border M&A and provide a framework designed to help manage the integration process throughout the M&A lifecycle. This framework presents culture assessment and integration as a crucial component to reducing poor culture-fit as a barrier to M&A success. Mergers and acquisitions (M&A) have become a central part of most corporate growth strategies, and an increasing portion of that M&A activity now spans national borders. Indeed, beyond a certain scale, one might say that all M&A is now cross-border M&A. For example, even a merger Advances in Global Leadership, Volume 6, 95–115 Copyright r 2011 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISSN: 1535-1203/doi:10.1108/S1535-1203(2011)0000006008 95 96 DANIEL R. DENISON ET AL. between two......

Words: 7716 - Pages: 31

Premium Essay

Assignment

...MANAGING CULTURAL INTEGRATION IN CROSS-BORDER MERGERS AND ACQUISITIONS Daniel R. Denison, Bryan Adkins and Ashley M. Guidroz ABSTRACT Cross-border M&A has become one of the leading approaches for firms to gain access to global markets. Yet there has been little progress in the research literature exploring the role that culture may play in the success of these ventures. Poor culture-fit has often been cited as one reason why M&A has not produced the outcomes organizations hoped for (Cartwright & Schoenberg, 2006). Cross-border M&A has the added challenges of having to deal with both national and organizational culture differences. In this chapter we review the literature on cultural integration in cross-border M&A and provide a framework designed to help manage the integration process throughout the M&A lifecycle. This framework presents culture assessment and integration as a crucial component to reducing poor culture-fit as a barrier to M&A success. Mergers and acquisitions (M&A) have become a central part of most corporate growth strategies, and an increasing portion of that M&A activity now spans national borders. Indeed, beyond a certain scale, one might say that all M&A is now cross-border M&A. For example, even a merger Advances in Global Leadership, Volume 6, 95–115 Copyright r 2011 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISSN: 1535-1203/doi:10.1108/S1535-1203(2011)0000006008 95 96 DANIEL R. DENISON ET......

Words: 7716 - Pages: 31

Premium Essay

‘M&as: Why Don’t People Ever Learn from the Mistakes of Others? by William Richards Introduction over the Years, Mergers and Acquisitions Research Has Identified the Importance of Leadership and Workplace Learning as

...‘M&As: why don’t people ever learn from the mistakes of others? by William Richards Introduction Over the years, mergers and acquisitions research has identified the importance of leadership and workplace learning as critical determinants of M&A activities and outcomes. However, surprisingly little systematic attention has been paid to conceptualising or studying the impact and effect of either leadership styles or learning on the success of M&As – either in the academic or in the practitioner literature (Cartwright and Cooper, 2001) Although scholars and practitioners recognise that acquisitions frequently fail to live up to their potential (Larsson and Finkelstein, 1999), the impact of leadership on the outcomes of the acquisition process and the learning that takes place, has not been well developed or even widely recognised. A review of scholarly and practitioner focused writing on M&As suggest that while much has been written on the actual M&A process, others have only occasionally noted the critical importance of leadership and learning in the success or failure of M&As. Even in those cases where the leadership impact has been acknowledged, past work on M&As has neither examined nor proposed any details concerning what constitutes what learning that actually takes place during M&A or how it makes a difference. A review of academic and practitioner literature on M&A reveals that discussion of the primary determinants of M&A process and outcomes rarely ever...

Words: 3564 - Pages: 15

Free Essay

Management

...UNIVERSITY Definition of Due Diligence Due Diligence term often we read or hear from the media business and law. Suppose the investor will perform due diligence process to the individual/ specific company before deciding to invest. Due diligence is the process of investigation or survey conducted by a party to the other party prior to the signing of the contract of force cooperation among all parties. This process is not a requirement of the law but it is voluntary. But it is really important to do for the sake of prudence prior cooperation or decisions taken into problems later on. Due diligence is a term used for the investigation to the company's performance appraisal or a person, or the performance of an activity to meet the specified standards. The term of this due diligence can be used in showing an assessment of the observance of the law, but the term is generally used to indicate a voluntary investigation activities. Some common examples of the "due diligence" in this example include: * A process of investigation in the implementation of a “business combination” (merger) of acquisition in which an interest in doing and assessment of the company to whom the purchase or appraisal of assets of the company. * An inquiry into the fulfillment of various criteria to the requirements in the certification process of a product or service (e.g. ISO, etc.) The term "due diligence" first came into common use as a result of the United States' Securities Act of......

Words: 1940 - Pages: 8

Free Essay

Atomic Layer Deposition

...Minireviews Electronic Materials M. Leskelä and M. Ritala Atomic Layer Deposition Chemistry: Recent Developments and Future Challenges** Markku Leskelä* and Mikko Ritala Keywords: atomic layer deposition · microelectronics · nitrides · oxides · thin films ew materials, namely high-k (high-permittivity) dielectrics to replace SiO2, Cu to replace Al, and barrier materials for Cu, are revolutionizing modern integrated circuits. These materials must be deposited as very thin films on structured surfaces. The self-limiting growth mechanism characteristic to atomic layer deposition (ALD) facilitates the control of film thickness at the atomic level and allows deposition on large and complex surfaces. These features make ALD a very promising technique for future integrated circuits. Recent ALD research has mainly focused on materials required in microelectronics. Chemistry, in particular the selection of suitable precursor combinations, is the key issue in ALD; many interesting results have been obtained by smart chemistry. ALD is also likely to find applications in other areas, such as magnetic recording heads, optics, demanding protective coatings, and micro-electromechanical systems, provided that cost-effective processes can be found for the materials required. N 1. Introduction Atomic layer deposition (ALD) has recently received much interest as a potential deposition method for advanced thin-film structures. However, ALD had already been developed and......

Words: 5714 - Pages: 23

Premium Essay

Trends, Challenges, and Technology Use in a Changing M&a Environment

...A Forrester Consulting Thought Leadership Paper Commissioned By IntraLinks Trends, Challenges, And Technology Use In A Changing M&A Environment M&A Management Tools — The Missing Link To Institutionalize M&A May 2010 Forrester Consulting Trends, Challenges, And Technology Use In A Changing M&A Environment Table Of Contents Executive Summary ............................................................................................................................................................................................2 The M&A Management Tools Market Is Still Nascent ...........................................................................................................................3 Trends And Challenges In A Changing M&A Environment ................................................................................................................4 Criteria For Successful Corporate M&A ......................................................................................................................................................8 Technology Use And Satisfaction In M&A .............................................................................................................................................. 12 Capabilities Of The Next-Generation M&A Management Tool ....................................................................................................... 15 Key Recommendations .........................................................

Words: 5842 - Pages: 24

Premium Essay

Executive Assistant

...has taken since its early days and venture to look into the future a little. Tina Huesing, Motorola, October 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005 80 Years of Reinvention 1928 1936 1943 1955 1969 1973 Company founded First portable FM two-way radio for U.S. army First words from the moon relayed via a Motorola radio Demonstrated prototype of the DynaTAC portable cellular system Entered the mobile communications business with Police Cruiser Radio Tina Huesing, Motorola, October 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2006 World’s first high-power transistor in commercial production 80 Years of Reinvention 1986 1995 1996 2000 2002 Invented the Six Sigma Quality Process that provided a common worldwide language for measuring quality World’s first wireless cable modem gateway introduced The Motorola Tango pager is the world’s first two-way pager The 3.1 ounce (88 grams) StarTac© wearable cellular phone is the world’s smallest and lightest Tina Huesing, Motorola, October 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners....

Words: 6173 - Pages: 25

Free Essay

Tqm in Vovlo

... 9 4.2 APQP Planning 9 4.3 APQP Review 10 5.0 Quality management in PPAP (production part approval process) 11 6.0 The 8D framework 12 6.1 Background of 8D 12 6.2 What is 8D? 12 6.3 The 8 discipline 12 7.0 The QJ process 14 7.1 Identify new QJ 14 7.2 Open New QJ 14 7.3 Investigate QJ 15 7.4 Develop solution 15 7.5 implement solution 16 7.6 Follow up 16 8.0 poka-yoke 17 9.0 Specification paper 17 10.0 Warning light 17 11.0 Scanner 17 Table of Figures Figure 1: six sigma improvement process transactional tasks 6 Figure 2: Process Input and Output 7 Figure 3: An example of APQP planning 10 Figure 4: This picture illustrates how to match Volvo GDP at part level with supplier 11 Figure 5: chart showing PPAR process 12 Figure 6: The eight steps in 8D 14 Abstract Maintaining quality in production system management is very important in competitive world. Volvo implemented poka-yoke system in order to maintain zero defects in the production system. Volvo Powertrain has a problem solving process called the QJ-process, which is based on the 8D framework. If quality issues occur that are severe or urgent enough, a problem-solving project is initiated, the QJ-process is due to this very...

Words: 4069 - Pages: 17

Premium Essay

Cloud Compution

...as service and by needs based on the broker policy[4]. So in order to get maximum benefit from cloud computing there is need to dynamically balance the load among servers and improve utilization of resources. There are still some areas that are needed to be focused on in cloud computing.  Resource Management  Task Scheduling The task scheduling goals of Cloud computing is provide optimal tasks scheduling for users, and provide the entire cloud system throughput and QoS at the same time. Scheduling is the process of allocating tasks to available resources on the basis of tasks need [5].The main purpose for scheduling is to maximize the utilization of resources. Following are the needs of job scheduling in cloud computing: CPU utilization – keep the CPU as busy as possible (from 0% to 100%) Throughput – # of processes that complete their execution per time unit Turnaround time – amount of time to execute a particular Process Waiting time – amount of time a process has been waiting in the ready queue...

Words: 2467 - Pages: 10

Premium Essay

Process Identification Plan for Toyota

...The Case for Change at Toyota Motor Corporation Process Identification and Improvement Plan ______________________________________________________________________________ Unit 1 Assignment 1 MBA 6022 Lynette D. Capella University Abstract This Process Identification and Improvement Plan will begin with a summary of the Toyota Motor Corporation and core commitment to safety, quality and volume. It will also refer to the case study review titled “Toyota: The Accelerator Crisis (2010), by Greto, Schotter, and Teagarden for a synopsis of the accelerator and automobile recall crisis that affected the company’s reputation, image and near financial collapse. It also identifies two distinct process areas have been targeted for improvement, Toyota’s HR management systems and TPS/Lean Production System which need to be integrated. Furthermore, this plan will further discuss areas of development, positive impact and benefits to the company— and demonstrate how if a process change does occur how it will negatively impact this particular industry/ areas for improvement or innovation and then discussing the specific opportunities including impact and benefits. Introduction Toyota Summary: According to Greto, (2010), in 1933, Toyota Motor Corporation was originally founded as a division of Toyoda Automatic Loom Works; which was dedicated to the production of vehicles under the guidance of Kiichiro Toyoda. The company’s first automobiles were the A1 passenger......

Words: 3876 - Pages: 16

Premium Essay

Is Henri Fayol's Management Theory Relevant Today

...MANAGEMENT A case study of H&M Ding Huiru Business Administration Bachelor’s thesis International Business April 2011 2 SAVONIA UNIVERSITY OF APPLIED SCIENCES SAVONIA BUSINESS Degree Programme, option International Business Author(s) Ding Huiru Title of study The importance of strategic management, Case study of H&M Type of project Date Pages Thesis 27.4.2011 59+12 Supervisor(s) of study 1st Antti Iire 2nd Anneli Juutilainen Abstract Executive organization H&M in Kuopio,Finland Hennes & Mauritz (H&M) is a 100 billion Sweden company, engaged in designing and retailing of fashion apparel and accessories. The company offers a range of apparel, cosmetics, footwear and accessories for men, women, children and teenagers. H&M primarily operates in Europe, North America and Asia, and has a presence in over 38 countries. The company is headquartered in Stockholm, Sweden and employs approximately 87,000 people on a full-time basis. This thesis focused on the strategic management of H&M company. The main research problem was to make an in-depth analysis of its marketing strategy and how to implement it. The main research method was a qualitative research by analyzing their company data, annual reports and making interviews with the manager, staffs and customers in Kuopio shop. The thesis starts with a general introduction and some background information of this thesis work. In the theoretical part, it described the definition, process, benefit and challenge......

Words: 14584 - Pages: 59