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Mergers & Acquisitions (M&A, M&A business) (English: Fusions and assumptions) is a comprehensive term for enterprise transactions, with which societies unite or the owner for societies change.

M&A designation here both the procedure actually and the industry of the Dienstleister such as Investmentbanken, corporate lawyers, chartered accoutants and advisors, hereby concerned. In the Investmentbankbereich M&A is considered as subrange of the Corporate Finance.

Expiration

  1. Preparatory phase
  2. Transaction phase
  3. Integration phase

Typical steps of a M&A transaction

  1. Screening (selection of a goal enterprise, often "“target"” mentioned)
  2. Speech of the goal enterprise or the owner, partly with help of a Investmentbank or a M&A of advisor
  3. Signing of a secrecy agreement (NDA), mutual becoming acquainted with and interest alignment
  4. Signing of a Letters OF Intent (declaration of intent)
  5. Due Diligence (dd), i.e. careful examination of the target
  6. final structuring of the transaction (Deal Design), according to the results of the Due Diligence
  7. Evaluation and price negotiation
  8. Conclusion of a contract, possibly after registration of the transaction at the competition authority

Larger enterprises have usually own M&A departments, however nevertheless often fall back to external Dienstleister. The payment of the Investmentbank orients itself thereby at the transaction volume while lawyers are paid typically after expenditure of time and chartered accoutant either after expenditure of time or drop lump sum.

In the public perception M&A transactions often stand in the criticism, since Erwerber in many cases connect strategic goals with the transaction, which necessary restructuring and thus job dismantling make often. In the management economics straight in this fact self healing forces of the market are seen turned around.

Results

Successes of M & A are often smaller than expected, since scale effects do not adjust themselves or are overcompensated by co-ordination costs. "„Assumptions destroy value "“, in trade paper enterprise and markets, 3. May 2006, P. 17

Literature

  • Stephan A. Jansen: Mergers & acquisitions: Enterprise acquisitions and - co-operation, a strategic, organizational and capital market-theoretical introduction. 4. Edition. Publishing house Gabler, Wiesbaden 2001. ISBN 3-409-73301-9
  • Marcus Oehlrich: Strategic analysis of enterprise acquisitions. Publishing house Gabler, Wiesbaden 1999 (unchanged reproduction 2001). ISBN 3-8244-6852-2
  • Gerhard Picot: Manual Mergers & Acquisitions - planning - execution - integration, 3.Auflage, Poeschel publishing house, Stuttgart 2005, ISBN 3-7910-2363-2
  • Gerhard Picot: Enterprise purchase and restructuring - manual to the commercial law, 3.Auflage, C.H.Beck publishing house, Munich 2004, ISBN 3-4065-1464-2
  • Willemsen/Hohenstatt/Schweibert/Seibt: Restructuring and transmission of enterprises - manual pertaining to labour law, 2. Edition, C.H.Beck publishing house, Munich 2003, ISBN 3-406-49960-0

See also

  • Assumption
  • Enterprise assumption

Footnotes


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