CHAPTER 3

An Overview of the Merger and Acquisition Process

Merging with or acquiring another company is a complicated process. To have a clear understanding of the process, the decision maker must have an overview of different phases of the process. In this chapter, we discuss the various stages of an acquisition or merging process.

Although there are many ways to organize an acquisition process, a logical way of doing so is to divide such a process into four categories: strategic planning, screening, acquisition, and integration. We discuss each of these categories next.

Strategic (Long-Term) Planning

Planning implies thinking ahead about how to achieve a goal. Successful enterprises must frequently adjust to changes in technology, production ...

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