Acquisitions

Acquisitions

At the beginning of a typical acquisition process the strategy has to be determined. The relevant market is then to be analyzed and potential targets are to be identified.

Thereafter, the owners of the so-identified companies will be contacted with the utmost discretion to find out whether they are interested in selling their businesses. If, all in all, a potential transaction turns out to be feasible, a take-over concept has to be worked out, i.e. both the economic situation and the financial data of the target company are to be scrutinized.

On the basis of this information the potential purchase price range is to be determined and an adequate financing structure is to be developed.

If the parties reach an agreement, this will be legally stipulated in a Letter of Intent. A buyer's due diligence will follow, in the course of which the acquisition target's profile will be completed, the company value will be determined and the contractual basics will be worked out. The signing of the purchase contract will finalize the transaction.

• The M&A Process