Five stage model of mergers and acquisitions

Five stage model of mergers and acquisitions

• 1.
  The Five StageModel of M&A
• 2.
  The five StagesCorporate strategy development Organising for acquisitions Deal structuring and negotiations Post acquisition integration Post acquisition audit and organisational learning
• 3.
  Corporate strategy developmentM& A is an instrument for achieving corporate strategy Corporate strategy is concerned with ways of optimizing the portfolios of businesses that a firm currently owns with how this portfolio can be changed to serve the interests of corporate stakeholders.
• 4.
  Organising for acquisitionsA pre condition for successful acquisition is that the firm organises itself for effective acquisition making Understand beforehand the value creation logic Leads to successful post integration Develop a framework for effective organisation of M&A activity Get requisite skills , knowledge and capabilities
• 5.
  Deal structuring andnegotiations Valuation of target companies Choosing advisors Obtaining and evaluating as much intelligence as possible of target Due diligence Determining negotiation parameter Negotiation of senior management positions in the firm Developing bid and defenses strategies
• 6.
  Post acquisition integrationChange management programme of target firm acquiring firm attitude and behaviour of both to accommodate co-existence of the two organisations
• 7.
  Post acquisition auditand organisational learning Emphasis on learning Archiving for future