An overview of the integral steps in mergers and acquisitions

For better or worse, mergers and acquisitions (M&As) are a reality in business. People who have extensive experience in key positions of large companies are mostly familiar with M&As.
For this article, Tyler Tysdal, one such veteran in the business, shares some important information, as well as the integral steps in M&As.

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A lot of planning goes into M&As. Mergers are when two companies combine their resources to form an even bigger company. Acquisitions happen when one business buys another that’s up for sale. Many times mergers and acquisitions overlap, which is why they are often mentioned in the same breath.

For many business leaders, an M&A may signify the peak of one’s career.
M&As have several important steps that have to be accomplished before they’re completed. These steps include planning, strategizing, evaluation, valuation, negotiation, and the amalgamation of assets, which would either preserve or increase the value of companies.

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Planning comes first. Key figures come together to develop a strategy that would benefit the organization as a whole. This is followed by target screening. Through target screening, a company sends a team to look at companies that can either be bought or merged with. The third step sees the company evaluate and assess the target business. The findings of this evaluation and assessment will be discussed by the committee in charge of the M&A. If all agree to the action, the company now calculates how much the target business is worth for the proposal. Meetings occur after, wherein important points touch on management roles, corporate culture, goals, targets, and other issues. Finally, integration happens, which sometimes may take months to fully accomplish, depending on the size of the companies.

Tyler Tysdal is the managing partner of Platte Management, leading the company’s investment efforts in several real estate properties in the U.S. These properties have primarily been in hospitality in hot markets, such as Manhattan and Seattle. To read more about the industry, visit this blog.