Mergers and Acquisitions Basics

Chapter 8. The Negotiation, Integration Planning, and Closing Phases

The negotiation phase often is the most complex aspect of the acquisition process. It involves refining the preliminary valuation, structuring the deal, conducting due diligence, and developing a financing plan. It is interactive and iterative. Activities unfold concurrently. It is during this phase that the actual purchase price paid for the acquired business is determined—and frequently the price will be quite a bit different from the initial valuation of the target company, which was probably made before due diligence and with only limited, publicly available information.

The negotiation phase often is the most complex aspect of the acquisition process. It involves refining ...