Growth through company takeovers - Mergers & Acquisitions - Company acquisition
The acquisition of a company is a complex process that can be roughly divided into the following phases:
Each of these phases in turn is subdivided into a series of measures. Thus, the definition of the M&A process includes, among others, the:
- Identification of acquisition objects ("targets")
- Addressing the targets
- Preparation for the first management meeting (the buyer must "sell" himself and his strategy convincingly if he does not want to pay the highest purchase price)
- Options for transaction structuring (e.g. cash/shares, earn-out, debtor warrant, call/put options, vendor loans, etc.)
- Possibilities and methods of company valuation
- Contents of the letter of intent
- Focal points of due diligence
- Contents of the company purchase agreement (Sales and Purchase Agreement)
- Negotiation of the company purchase agreement
Every aspect of the M&A process requires thorough preparation and professional implementation.
Corporate acquisitions have a significant impact on the company - it is not uncommon for companies to fail in acquisitions and thus endanger the entire company. Professional preparation and implementation of M&A transactions increasingly distinguishes between market leaders and the rest of the companies in the market, because a failed acquisition weakens a company in the long term. Especially a professional M&A advisor with many years of practical experience in M&A transactions represents a strategic advantage for buyers; whether in the approach, the company valuation, the management of the M&A process, the function as a coach or in the contract negotiation.
Entrepreneurs with little or no experience in M&A often see a structured and pro-active approach as unnecessary or even an obstacle. As M&A consultants with more than 20 years of practical experience, we can only advise against an unstructured and not thoroughly prepared approach - it is one of the main reasons why the rate of unsuccessful takeovers is still very high today - or to put it another way, it is usually the seller and not the buyer who profits in M&A transactions!
Our book recommendation is: Becksches Formularbuch Mergers and Acquisitions (June 2018 edition). Here you will find samples, forms and background information on the acquisition of a company, sale of a company, letter of intent, purchase agreement, etc.
KP Tech Corporate Finance (Germany - Austria - Switzerland)
M&A consulting for Germany, Austria and Switzerland: As an owner-managed and independent management consulting firm, KP Tech Corporate Finance specialises in Mergers & Acquisitions consulting. Our clients benefit from more than 20 years of experience in international corporate finance consulting. The focal points of our consulting are the topics: Company sale, company acquisition, company valuation, company succession and private equity consulting.