M&A Strategy Planning
Originally published: 15/05/2023 09:43
Publication number: ELQ-29995-1
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M&A Strategy Planning

Merger & Acquisition Strategy is the process undertaken in which one corporate buys, sells, or combines with the other corporate to achieve a certain goal.

Description
Generally, the bigger companies in the market hunt for smaller companies for the acquisition process. Companies have different policies for mergers & acquisitions like expanding an existing business, research, development, etc. All these policies should be kept in mind while entering the M&A Strategy by both companies. Failure to implement proper planning, study, and lack of strategies, also fails the merger & acquisition strategy. The resulting company formed cannot survive in the long run. Hence, proper planning, understanding of the market and the business of both companies and proper strategies should be done well in advance before implementing merger & acquisition strategies. The most crucial strategy of M&A is the hunting of the target company. Once the company has decided on its target company for acquisition, it can plan further acquisition steps.
The next step is a thorough study of the business of the company to be purchased. The study of the expected business, demand, and future growth is also to be undertaken. It will also give an idea of the risks involved in the acquisition or future business.
Next, the study of the market should be undertaken. It will give the idea of growth factors in the market. The company can also get an idea of future opportunities, trends in the market, and customers’ demands.
There should be the consent of both the companies, i.e., the acquiring company and the target company, to take part in the merger and acquisition before implementing the strategy.

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