Mergers and acquisitions lead to the consolidation of several businesses and assets through financial transactions. In Hawaii, the process involves a series of steps to merge and acquire a company. Planning, research, closing and implementation are the key activities involved in this process. However, regulations can delay the approval time.
How long does the process take?
The length of the mergers and acquisitions process differs. Some deals are more complex than others. Less complex deals can take up to six months while others take several years. Thus, drafting a timeline is essential in tracking and understanding the process.
Steps of a merger
The first step is coming up with an acquisition strategy. As a business, you need to have goals that you want to gain once you acquire a business. Additionally, you need to consider the current market conditions and future projections before going on with the deal.
Secondly, create a profile of the merger and acquisition deal that you want. Consider what the company provides, the size and financial position of the firm, services offered and any factors that may entice you. Creating general criteria enables you to sort out the companies you want.
Third, start planning for the acquisition. When you identify a potential firm, send a letter of intent expressing your intentions of buying the firm. The letter should have a summary of your proposal. The letter will also open leeway for the valuation process. Valuation is a critical process that provides you with the financial and SWOT analysis of the firm. Most executives consider quarterly earning reports from analysts while discussing the merger.
After the valuation, consider hiring a legal team to assist you in negotiating the deal. An experienced attorney might help you negotiate the best possible deal.