Mergers Acquisitions Management Design Associates BuySide Services THE

Mergers & Acquisitions- Management Design Associates’ Buy-Side Services THE THREE PHASES OF THE MERGER & ACQUISITION PROCESS

Market/Product/Customer Alignment When traditional due diligence is conducted the accounting and legal analysis is generally very strong. But who is going out and evaluating the market? When evaluating new M+A opportunities, it is important to determine the customer’s satisfaction with the product, the product’s competitiveness, and what’s emerging in new ways to serve the target market. In addition, is the technology compatible? This and many other evaluation points are not executed completely.

How We Add Value! How does Management Design Associates help you in the initial/pretransaction stages? We align with you as a partner who: Isn’t going to push you to make a transaction if it isn’t what’s best for your company. Will help you make the right decision by gathering data on key questions/criteria. Won’t allow you to get yourself into trouble by entering into bad deals.

Phase I: Pre-transaction Phase: Are you really ready to merge or acquire? The first step in the pre-transaction phase is to validate your position in the market place by answering these types of questions: Is it the right time to acquire or merge in your industry? Does the selected business align with your company’s brand portfolio? What are your goals for the transaction? What would the financial aspects of a transactions look like? Establish your personal goals. Help you understand the process of acquiring or merging a business. Next we roll those together to determine whether this is a good time for you to consider a transaction.

Phase II: Transaction Strategy You’ve determined that it is the right time to acquire another or merge your company (or see Phase III). Determine strategic Goals and develop buying strategy. See Questions to Ask. Identify universe of likely acquisition or merger prospects based on strategic and financial parameters. Confidentially contact prospects and screen to establish qualified and serious prospects. Assist in evaluation, negotiation and due diligence. Complete Acquisition, including final negotiations, documentation and post-acquisition merger issues.

Phase III: It’s not the right time You’ve determined that it is not the right time to acquire another or merge your company. You would like to position your company for a future transaction. You will monitor the market for changes that may support a future transaction. You decide not to move forward and grow your business organically.