How to Explain the Mergers & Acquisitions Process to Employees

Employees are typically hungry for information about the merger.  This presentation explains the merger & acquisition steps in a simple, concise manner.

Discuss the following:

Acquisitions can be viewed as a series of interrelated steps. Generally, these steps can be categorized as:

• Due Diligence 
• Agreement 
• Integration Planning 
• Announcement Planning/Announcement 
• Regulatory Approval 
• Closing 
• Integration

  Describe Due Diligence

• During Due Diligence, information is collected:
  • To assist in the valuation of an acquisition target 
  • To uncover any risks that may exist (e.g., existing or potential legal liabilities) 
  • To uncover opportunities for additional growth or profitability that have not been capitalized on by the organization being evaluated for purchase
• Due Diligence can be divided into:
  • Public Due Diligence—the collecting of information that already exists in the public domain 
  • Inside Due Diligence—which occurs after contact has occurred between the companies

Describe Negotiation/Agreement

• Both organizations begin formulating an Agreement as Due Diligence information is collected. 
• This step includes the different levels of Agreement that may be signed as the deal progresses, such as:
  • Letter of Intent 
  • Definitive Purchase Agreement

Describe Integration Planning/Integration

• During this step, detailed Integration Plans are developed. These plans identify the priority items to be addressed operationally after the deal is closed. 
• Typically, teams of people (e.g., Task Forces) organized around key functions or processes develop these Integration Plans, then present recommendations to a Steering Committee for approval. 
• These plans include detail on such things as ...