1. Preparation

Before initiating an M&A deal, thorough preparation is essential. This stage involves assessing the business’s financial health, identifying potential buyers or sellers, and setting objectives. Due diligence begins early to mitigate risks and streamline negotiations.

Key tasks include:

• Conducting a business valuation

• Organising financial records and legal documents

• Identifying strategic acquisition goals

2. Matching

In this phase, buyers and sellers engage with advisors to find the right match. Investment banks, brokers, and networking platforms help facilitate introductions between interested parties. Effective matching ensures both sides align in terms of goals, industry relevance, and financial capacity.

3. Bid & Offer

Once a potential match is found, negotiations begin. The buyer submits an initial bid, and discussions revolve around pricing, deal structure, and financing options.

Key activities include:

• Submitting a Letter of Intent (LOI)

• Negotiating terms and valuation

• Conducting preliminary due diligence

4. Due Diligence

Due diligence is a critical step in the M&A timeline, where the buyer verifies financials, legal standing, and operational risks. This stage can significantly impact deal terms or even lead to renegotiations.

Key areas of focus include:

• Financial audits and tax compliance

• Reviewing contracts, liabilities, and assets

• Assessing cultural and operational fit

5. Completion

Once all due diligence is completed and final terms are agreed upon, the deal moves to completion. Legal contracts are signed, ownership is transferred, and post-merger integration begins. A smooth transition plan is essential for long-term success.

Final Thoughts

Understanding the M&A timeline helps both buyers and sellers approach the process strategically. Each stage requires meticulous planning, expert advice, and strong negotiation skills. By following this structured approach, businesses can maximise value and ensure a seamless transition.