M&A Deal Cycle sell side

Hello everybody,

I was wondering if anyone could help me out with the deal cycle if a CEO is willing to sell the company. I found quite a lot on the buy-side but the information on the sell-side are pretty scarce (from my experience so far). Does anybody have an idea? Does it maybe go as follow:

1) Internal company analysis
2) Due Diligence
3) Identification of possible buyers
4) Negotiation (incl. signing of the letter of intent and the non-disclosure agreement)
5) Sigining and closing
((6) Post merger segregation if a certain business unit is sold))

Would appreciate your opinions :)

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Top answer

Clara

Coach

on Jun 01, 2021

McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Same as Marco, feel free to PM me! Back in McK I did plenty of DDs, all were M&A, so happy to chat

Cheers,

Clara

Marco-Alexander

Coach

edited on Nov 30, 2021

Former BCG | Case author for efellows book | Experience in 6 consultancies (Stern Stewart, Capgemini, KPMG, VW Con., Hor

Ian

Coach

on Jun 01, 2021

Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

This is generally right!

I wouldn't have DD as step 2. I think you mean to say step 2 is figuring out the value of the company.

DD is going to happen after/during step 5 (i.e. when the buyer conducts due diligience on the firm).

Now, you've laid out the process steps, but make sure you're thinking about the how/why. It's important to think through all the ways we can value the company, how we figure out what it's worth, etc. etc.