Mergers Acquisitions Template The term Mergers and Acquisitions

Mergers & Acquisitions Template • The term Mergers and Acquisitions are often used interchangeably, but they actually have slightly different meanings. A Merger is when two companies of approximately the same size decide to move forward as one entity in order to strengthen their hold in an industry. Both company’s stocks are surrendered and replaced with new stock representing the new company. An Acquisition is when one company takes over another company, and the original company ceases to exist. The purchasing company’s stock takes over and is generally strengthened with the new purchase. Acquisitions are usually regarded as unfriendly deals, since usually the target company does not want to be purchased. • Mergers & Acquisitions as a strategy is often successful for companies wishing to quickly increase in size, service area, talent pool, customer base and financial resources. Since the process can also be financially taxing, the company needs to be sure there is substantial advantage to be gained. Want more tools and templates? Visit https: //upboard. io/

Mergers & Acquisitions Template 1 Steps: Focus & Key Activities • • • Strategy Market Dynamics Megatrends Portfolio Analysis Competitive Differentiation Competitive Map Identification and ranking of target prospects 2 Target Screening Initial prioritization Initial contact NDA Engage in preliminary discussions • Select best target • • 3 Due Diligence • Industry and customer analysis • Competitive Position • Distribution channels • Cost structures • Integration synergies and capabilities • Risks and Opportunities • Financial analysis • Cultural analysis 4 5 Pre-Close Planning Final Evaluation • Analysis of order book and customer satisfaction • Manufacturing and technology audit • Risk mitigation plan • Valuation analysis • Financing model • Integration plan • Day one planning • Organizational integration Plan • Leadership communications plan • Interim management • Sales continuity plan • Technology plan 6 Post Close Implementation • Cultural and functional integration • IT systems integration • Portfolio reconciliation and integration Prospect Evaluation Matrix Criteria Metric Description Financial How would a merger or acquisition impact our short and long-term cost savings and revenue? Customers Are the prospects current customers loyal and strategic for our future? Geography Does the company offer us geographic expansion or competitive advantage opportunities? Culture Is there a cultural fit between our companies? Would integration challenges overshadow the short or long-term benefits? Weight (%) Score (1 -10) Score (Weight x Rating)

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