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We explore the M&A process—from search to PMI.
M&A has become an essential strategic tool for corporate growth and enhancing competitiveness, yet the process is complex and presents various challenges.
In particular, for small and medium-sized enterprises preparing for sale, acquisition, or business succession, meticulous planning and professional advice are crucial.
In this column, we will outline the key procedures of M&A.
Strategy Formulation and Target Company Search
The initiation of M&A begins with clear goal setting and strategy development.
The company must clearly define the reasons for pursuing M&A and the objectives it wishes to achieve.
This requires considering various purposes such as market share expansion, technology acquisition, and synergy creation.
Additionally, it is imperative to thoroughly analyze and search for suitable targets by examining the financial status, market position, and growth potential of target companies.
Due Diligence and Valuation
M&A due diligence involves a thorough analysis of the target company's financial condition, market position, and legal risks to enhance the reliability of the transaction.
This process prevents unforeseen financial issues, clearly defines the strategic value of the company, and proactively resolves potential legal disputes.
Successful M&A requires close collaboration among experts and rigorous preparation.
Negotiation and Contract Conclusion
Based on due diligence results, the seller and buyer negotiate the contract terms.
It is important to clearly draft provisions that align transaction structure, risk management measures, and price terms while preventing legal disputes.
Post-Merger Integration (PMI)
Even after the contract is concluded, there must be Post-Merger Integration (PMI) of assets, personnel, and systems between the acquired and existing companies.
PMI focuses on seamlessly integrating organizational culture, operational methods, and IT systems to efficiently operate the two companies as a single entity.
If PMI is not properly executed, there is a significant risk of reduced operational efficiency, unexpected cost increases, and internal conflicts, all of which may impede the synergy effects of M&A.
Conclusion
M&A is a core strategy for continuous corporate growth and strengthening competitiveness. However, since the M&A process is highly complex and time-consuming, the assistance of a reliable partner is essential.
WMD utilizes data-driven analysis and AI technology to support strategic investor matching and swift deal closing.
Providing strategic investor matching services based on data from over one million companies, we enhance transaction success rates through rapid and efficient deal closings.
Moreover, through a transparent fee structure, we reduce the financial burden on clients and offer optimal solutions for successful transactions.
To illuminate the future of your company, WMD will do its utmost today.
Thank you.