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The Six Phases Of Merger And Acquisition

By Tiffany Gill


One wrong decision will lead into a problem or worse, bankruptcy. This is the life you are to face in the corporate world. By the time of crisis, a company usually have a merger from another company in order to save the fortunes they have established. And if you have a business and you think that it is too small to be noticed, then a merger and acquisition consulting might be best for you.

There are six fundamental steps in this process. And these phases must be followed in order to avoid complicating things. As mentioned, one single error would create a very unmanageable problem or bankruptcy. Business is somewhat an experiment that if not done well, it will explode.

Business assessment is the very first thing every company will face during the process. In this, both companies will undergo thorough evaluation and examination. Histories such as corporate culture, financial reports, the share holders and the heads, and any other business related stuff will be checked. This is because such factors might be good or bad for the future merge.

Then the proposal stage in which one of the party will send a proposal or representatives from both will formulate one. This should include all the supporting details about the fusion of the two institution like the new production structure, new constitution and by laws, new logo if required or even new products and clients.

Once you have done the two, your group can already have the planning exit. This would take time to work on especially if your company is part of groups of company. In this procedure, the administration has to evaluate all financial proceedings made by the concerned company. This would even include other corporate issues that cannot be observed by a naked eye.

After that there will be a structuring of business deal. The corporation that would take over will work on creating new marketing plans and strategies for a more innovative development. The purpose of this is to enhance the business and its credibility. In short, this process will be focusing on for the planning for the new business.

Then the stage of integration will come after. This phase, both parties are to finish all the important documents to finalize the M and A process. This involves contract and agreement signing and negotiation. Here, the scope and limitations of both companies are also discussed.

Venture operation will come after. This is considered as the experimentation period by most. Here, they will apply everything that is proposed and planned and check if it is effective or not. If the phase will be successful, then there will be a continuation of the business. If not then they have to revise their plan.

Even if you have already known the fundamental steps, a merger and acquisition consulting is still a necessity. Phases mentioned must be explained thoroughly especially to those who are not business tycoons. This is a critical topic that only business experts and lawyers can discuss such effectively.




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