Strategic Mergers and Acquisitions Advisory by Finnet
The initial phase in mergers and acquisitions—selecting the M&A target—might appear straightforward. However, many acquirers pursue targets opportunistically rather than through a methodical approach, leading to high failure rates. At Finnet, our expert M&A consultants assist clients in developing strategic, repeatable merger and acquisition processes that foster successful corporate unions. With our guidance, you can achieve your M&A objectives with precision and confidence.
Reason For Failure
- Inadequate integration concept
- Wrong Business logic or fit
- Wrong acquisition candidate
- High price but low synergies
How Finnet Adds value
- Prepare integration well before day one
- Develop and validate strategic rationale
- Access strategic fit and synergies for each target
- Help you negotiate on basis of key value drivers
Because Finnet views value creation in mergers and acquisitions as a continuum, we’re also prepared to support you at every stage, from transaction strategy to post-merger integration. M&A target identification typically takes about 3 months and is the first step in a process that can last up to 18 months.
Finnet experience consultants can help you through all phases of Merger and acquisition:
1
Pre-Deal Phase
1 Strategic Planning - Define objectives and strategy - Identify potential targets
1.2 Market Research and Target Identification - Conduct market analysis - Shortlist potential targets
1.3 Initial Contact and Confidentiality - Approach targets - Sign non-disclosure agreements (NDAs)
2
Due Diligence Phase
2.1 Preliminary Due Diligence - Review financial statements - Conduct preliminary risk assessment
2.2 Detailed Due Diligence - Financial due diligence - Legal due diligence - Operational due diligence - Tax due diligence - IT and systems due diligence - Environmental due diligence
2.3 Valuation and Deal Structuring - Perform business valuation - Structure the deal (e.g., asset purchase, stock purchase) - Develop financing plan (NDAs)
3
Negotiation Phase
3.1 Initial Offer and Negotiation - Present initial offer - Negotiate terms and conditions
3.2 Letter of Intent (LOI) - Draft and sign LOI - Outline key terms and conditions
3.3 Final Negotiations - Refine deal terms - Address contingencies (NDAs)
4
Transaction Phase
4.1 Agreement Drafting - Draft purchase agreement - Draft ancillary agreements (e.g., employment contracts, non-compete agreements)
4.2 Approvals and Compliance - Obtain regulatory approvals - Seek shareholder and board approvals
4.3 Financing and Closing Preparation - Secure financing - Prepare closing documents (NDAs)
5
Closing Phase
5.1 Final Review and Sign-off - Conduct final review of agreements - Sign closing documents
5.2 Funds Transfer and Asset Handover - Transfer funds - Handover assets and control
5.3 Public Announcement - Announce the transaction publicly
6
Post-Deal Integration Phase
6.1 Integration Planning - Develop integration plan - Assign integration teams
6.2 Operational Integration - Merge operations - Align processes and systems
6.3 Cultural Integration - Address cultural differences - Foster a unified company culture
6.4 Monitoring and Evaluation - Track integration progress - Evaluate deal performance - Implement improvements