In order to ensure the success of M&A, the merged enterprise must make a detailed investigation of the merged enterprise in order to formulate appropriate M&A and post-merger integration strategies. M&A survey should include the background and history of the enterprise, industry, marketing methods, manufacturing methods, financial information, research and development plans and other related issues.
If we want to ensure that the company's M&A business has a greater chance of success, before preparing to acquire a company, we must conduct necessary review on the target company to determine whether the M&A business is appropriate, so as to reduce the possible risks caused by M&A and provide reference for negotiating the trading conditions and determining the price. M&A investigation consists of a series of continuous activities, involving the collection, inspection, analysis and verification of the information of the target company.
Scope of M&A due diligence
1. The investigation on the operation of the target company is mainly to investigate and measure whether the target company meets the merger criteria according to the needs of the merger party's motives and strategies. If the acquirer wants to use the existing marketing channels of the target company to expand the market, it must understand its existing marketing agencies and networks, major customers and distribution, customer satisfaction and purchasing power, and the market share of major competitors; In terms of products.
2. Be sure to investigate the articles of association of the target company, especially stipulate that important decisions, such as merger or asset sale, must be approved by more than a few percent of the shares to avoid being hindered in the process of merger. The main financial list of the target company should be reviewed to understand its ownership, use price and replacement price.