A Comprehensive Guide to Mergers & Acquisitions: Managing the Critical Success Factors Across Every Stage of the M&A Process

10. Agreements

The negotiation process enters into an important stage after preliminary meetings have taken place, seller and buyer understand each other’s perspectives and objectives, and in an ideal case, the process of screening elicits the preferred candidate for both sides. The next step is the preparation of a precontractural written agreement that defines the respective preliminary understanding and conducts a process in which both parties agree to get to know each other better toward a long-term relationship. This process must be clear, well organized, and carefully orchestrated to make sure the definitive agreement fits the goals of both parties, serves as a roadmap for upcoming steps, and lays the ground for successful implementation ...