M&A Deal Cycle sell side

Deals Strategy M&A
New answer on Jun 01, 2021
4 Answers
819 Views
Anonymous A asked on May 31, 2021

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 :)

Overview of answers

Upvotes
  • Upvotes
  • Date ascending
  • Date descending
Best answer
Clara
Expert
Content Creator
replied 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

Was this answer helpful?
Marco-Alexander
Expert
Content Creator
updated an answer on Dec 01, 2021
Former BCG | Case author for efellows book | Experience in 6 consultancies (Stern Stewart, Capgemini, KPMG, VW Con., Hor

.

(edited)

Was this answer helpful?
Ian
Expert
Content Creator
replied on Jun 01, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

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.

Was this answer helpful?
Antonello
Expert
Content Creator
replied on Jun 01, 2021
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi, I have some cases available to be shared. Feel free to text me

Best,
Antonello

Was this answer helpful?
Clara gave the best answer

Clara

Content Creator
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
68
Meetings
24,220
Q&A Upvotes
147
Awards
5.0
57 Reviews
How likely are you to recommend us to a friend or fellow student?
0
1
2
3
4
5
6
7
8
9
10
0 = Not likely
10 = Very likely