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Services > Mergers & Acquisitions:
Mergers generally refer to the part of corporate finance strategy and management activities that deal with the combination of two companies to form a new company, while acquisitions refer to the purchase of one company by another. There is no such thing as a “standard” M&A process; nevertheless many transactions follow a common format. The following example of an M&A process is written from the seller’s perspective but will also make the buyer’s position clear
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Preparation of an information memorandum (a version of a business plan with focus on the sale of a business or division), including a detailed financial model
Identification and contacting of potential buyers
Buyers preparing their own financial models based on the information provided by the seller
Receipt of non-binding initial purchase offers or letters of interest from the potential buyers
Evaluation by the seller of the non-binding offers
Invitation to a second round of bids, typically to a smaller number of bidders (short-list)
Due diligence process for the second round bidders
Receipt of binding offers from the second round bidders
Selection of final buyer and closing process
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M&A transactions can be highly complex and involve very sensitive
issues. CENAK professionals have been actively involved in
the M&A business for many years and know precisely what is
required when taking a transaction from origination to closing.
M&A takes into account synergies and savings that are realized
by combining two companies. Because the global marketplace
forces companies to grow while remaining competitive, these
mergers can result in the loss of jobs. It is for these reasons
(plus many others) that companies engage outside advisors
such as CENAK Consulting to offer advice in regard to M&A
transactions. Our industry expertise in the M&A business is
very broad and highlights transactions in the energy, agriculture,
automotive and health care industries.
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