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What is the Buy-Side M&A Process?

Updated: Aug 15, 2022

As the number of mergers and acquisitions (M&A) continues to increase, so does the importance of understanding the process and key considerations for each party involved. For those on the buy-side of an M&A, the following is a high-level overview of the process and key considerations to keep in mind.

The M&A Process

The M&A process can generally be divided into four main phases:

  1. Pre-announcement

  2. Announcement

  3. Post-announcement

  4. Closing


This is the phase where both parties negotiate the terms of the deal and finalize due diligence. During this phase, it's essential to clearly understand your objectives and what you're willing to compromise on. It would help if you also had a good grasp of the other party's motivation for the deal, as this will help negotiate the terms.


Once the terms of the deal are agreed upon, it's time for the announcement. This is when the deal details are made public, and the stock prices of both companies can start to fluctuate. It's essential to manage expectations during this phase and be prepared for any adverse market reaction.


This phase starts after the announcement and goes until the deal is officially closed. During this time, there can be a lot of back and forth as both parties try to finalize the details. It's essential to stay focused on your objectives and keep the lines of communication open.


The closing is when the deal is officially completed, and all the paperwork is signed. This is usually when the stock price of the company being acquired starts to rise. After the closing, it's crucial to integrate the two companies quickly and effectively to realize the deal's benefits.

Key Considerations

There are a few key considerations to keep in mind when on the buy-side of an M&A:

  1. Financing

  2. Due diligence

  3. Synergies

  4. Integration


One of the most important considerations is how you will finance the deal. A few options are available, but choosing the one that's best for your company is essential. It would help to consider how the value would impact your company's debt and credit rating.

Due diligence

Due diligence is a critical part of the M&A process, and you must do your homework on the company you're looking to acquire. It would help if you looked at the company's financials, legal, and operational aspects to get a better understanding of the business.


One of the main reasons for doing an M&A is to realize synergies between the two companies. It's essential to have a clear plan for how the two companies will work together and what benefits you're looking to achieve.


After the deal is closed, it's crucial to integrate the two companies quickly and effectively. This can be a challenge, but it's essential to have a plan in place to make sure the transition is smooth.


M&A can be complex, but understanding the phases and key considerations is critical for those on the buy-side. Keeping the above in mind can increase your chances of a successful M&A.

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