How to Explain M&A Process to Employees

Employees are typically hungry for information about the merger. This presentation explains the M&A 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:

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 ...

How to Explain the M&A Process to Employees