ABSTRACT
This chapter explains from a historical context the rise of mergers and acquisitions (M&A), the current forces driving it and the deal-making process from due diligence to exit options. M&A is a transformative option for reshaping business, accelerating growth strategies and future-proofing the firm. M&A is predominantly conducted with the objective of creating economic value for all the parties involved in the transaction. Precedent transactions analysis is based on multiples paid for comparable firms in prior M&A transactions and helps to establish a potential range for the sale price. M&A rapidly reconfigures resources to better implement strategy by combing multiple firms and their assets and capabilities. From a sell-side perspective, the seller usually hires an investment bank with which it has a strong relationship to ascertain a comprehensive financial analysis and to understand its strategic options. Both the seller and the buyer are looking for speed of execution and certainty of completion as two major features of the deal.
