The acquisition process

An acquisition develops through several overlapping decisions. A buyer first needs a plausible target and a willing seller. Preliminary agreement establishes the economics to investigate. Diligence tests the business; financing establishes how consideration and transaction costs will be paid; final documents specify what each party must deliver. Completion occurs when the agreed conditions are met and ownership and money transfer.

Sey commonly describes a sequence of deal agreement, debt support and equity fundraising. That sequence helps an investor see the remaining funding gap, but it is not universal. Stanley describes a prospective transaction in which equity had to precede credit. The useful principle is to make dependencies explicit: identify which party needs evidence from whom before making a commitment. Watch source Watch source

Treat milestones as different levels of certainty. An accepted offer is not a signed purchase agreement, and a banker’s interest is not released loan proceeds. The collection describes lawyers coordinating funds under completion conditions. A single unresolved condition can prevent release even after considerable work. Build a timetable around outstanding decisions and documents, with space for updated accounts and funding checks. The source timelines are experiences and estimates rather than a service guarantee. Watch source

Follow the connections

Sourcing · Letter of intent · Due diligence.

Continue in the course: Anatomy of an acquisition.