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Financial Documents and Services You Will Need for an M&A

Publish date 08 Jun 2021

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    The purpose of M&A activity is to add value to your organization. There will have to be certain services and processes put into place before and after the sale to make the M&A process move seamlessly. Integration strategic tasks can become overlooked when the magnitude of an integration is more than expected. The M&A process from start to finish is extensive, specifically 6 months to over a year, and the proper expertise will be needed to advise you from the beginning to the end.

    The M&A Process:

    1. Acquisition Strategy
    2. Acquisition Criteria
    3. Search for Targets
    4. Acquisition Planning
    5. Valuing & Evaluation
    6. Negotiation
    7. Due Diligence
    8. Purchase & Contract
    9. Financing
    10. Implementation

    Which Financial Services Will You Need for an M&A?

    NOW CFO consultants assist in integrating key processes and procedures during the implementation and integration of an acquired or merged organization including:

    • Integration of HR policies & procedures
    • Branding & public relations
    • Rationalization of product portfolios
    • Supply-chain effectiveness
    • Cultural alignment
    • Focus on day-to-day business
    • Retention of top talent
    • Sales & marketing integration
    • Integration of IT systems & infrastructure
    • Integration-focused due diligence
    • Internal communication
    • Integration planning
    • Establishment of the right management team
    • Customer retention
    • Supplier / Vendor evaluation
    • Risk Management
    • Valuation

    Which Financial Documents Will You Need for an M&A?

    In the process of an M&A transaction, both buyers and sellers will need to come together to understand the documents that will be needed to finalize the transaction or investment. This will also allow for the buyer and seller to have better synergies, which is the concept that the combined value of performance of two companies will be greater than the sum of the separate individual parts.

    There will be certain KPI’s within your financial statements before they will invest or loan to your business. These include Net profit, Sales, Margins, Cash Flow, Customer Acquisition Cost, Customer Churn Rates, Debt, Accounts Receivable Turnover, Break-Even Point and Personal Investment. Our consultants will be able to help you find the specific ratios within each of these KPI’s.

    Some of the financial documents that will be needed for a M&A are:

    • Non-disclosure agreements
    • Term Sheet
    • Investors Rights Agreement
    • Stock Purchase Agreement
    • Confidential Information Memorandum
    • Seller’s Agreement
    • Letter of Intent (LOI)
    • Purchase and Sale Agreement
    • Escrow Agreements
    • Transition Services Agreements
    • Financial Statements

    How NOW CFO Can Help

    Our consultants seek to integrate your acquisitions with the single focus of making your organization stronger and more valuable in the long run. NOW CFO consultants maintain a structured approach to add value to your organization and want to be sure that the buyer receives these documents in a timely manner to speed up the process.


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