This section discusses all sides of why mergers and acquisitions (M&A) happen, including key factors in mergers, advantages and disadvantages of mergers, M&A strategy considerations etc.

The buyer of a business wants to ensure that no major material issue will arise after merger transaction takes place. Therefore the buyer will insist on a thorough due diligence process in order to know about any such issues and to negotiate with the seller on better terms before completing any merger or acquisition. Due diligence process is conducted to determine the value of the target company, structure the deal, and identify any problems. The target’s business operations, financials, and legal documentation should be thoroughly examined.

The most noteworthy deals in Ukraine in 2016 are presented in the following infographic.

The purpose of this section is to introduce reader to the main stages in the Mergers and Acquisitions (M&A) process from beginning to end. As a rule, an M&A transaction is complicated process, which may take months, or even years to finalize. The end of the M&A process certainly continues after the final signing of agreements since acquired or merged companies should be properly integrated.

M&A Process - Preparing to Sell or Buy

Both seller and buyer should prepare before selling or buying a business. The Seller must make his/her company look as attractive as possible to the Buyer; while the Buyer must do some work to determine the proper selection criteria for the company. Presale preparations include such main items as:

There are three main approaches to company valuation: comparable companies analysis, precedent transactions analysis and discounted cash flow (DCF) analysis.

Comparable companies analysis

Comparable companies analysis is based on the idea that similar companies share key financial and operational characteristics, risks and performance drivers. Comparable companies analysis involves selecting peer companies and then compare them and the target based on various financial ratios and key performance indicators. Then, trading multiples are calculated for the peer companies and applied to the target’s relevant financial indicators to come up with a valuation range for the target.

The Capital Raising & Deal Origination Network provides a secure space for screened business owners, investment bankers and advisers, private equity firms, commercial lenders and strategic buyers to connect, network, collaborate with one another, post your sell-side/buy-side business opportunities, and promote your online brand image.

In order to take the full advantage of the Capital Raising & Deal Origination Network, we suggest you to take these four simple steps.

Capital Raising & Deal Origination Network ambition is to promote the creation of a strong private sector in emerging & frontier economies and to enable them gain access to prosperity and sustainable development through the connection of deal professionals, investors, acquirers, and business owners who do or consider doing a business in one of developing countries.