Mergers and Acquisition (M&A) transaction procedures and Due Diligence

Published:2014-05-19    Source:HICG

M&A transaction procedures

Before conducting Due Diligence, both acquirer and sell-side shall sign Non-Disclosure-Agreement (“NDA”) or Letter Of Intent (“LOI”) covering pertinent confidentiality conditions. The details are illustrated in the chart 1.

Timing of conducting Due Diligence

Target shall provide business plan, financial reports and other internal documents to  acquirer after signing NDA. Based on the given internal documents, acquirer shall make a preliminary valuation. Soon afterwards, acquirer will conduct the due diligence once it gains the primary understanding regarding the valuation of the target.

Chart 1 M&A transaction procedures and Due Diligence