M&A Strategy Checklist

This workflow is designed to walk you through every stage of the M&A process from drafting your strategy to sending your closing the deal.

The purpose of this checklist is to:

• Make sure that all information reported by the seller is accurate.

• Determine and mitigate any risks.

• Ensure compliance with legal and regulatory requirements.

• Allow the deal to be priced based on facts, not assumptions.

INFO: For step-by-step guidance on creating, editing, managing, and running workflows, read Getting Started with Process Street: The 5 Stages of Process Building.

INFO: Tasks in this workflow have been assigned using Dynamic Role Assignments. Read more about Role Assignments in our Knowledge Base or watch the video below.

Use this task to record all the pertinent details about your M&A strategy team. 

INFO: The following task uses the Conditional Logic feature. Conditional Logic utilizes if/then logic to build paths that can change depending on which actions you take. Read more about it in our Knowledge Base, or watch the video below.

Due to Conditional Logic, this task will only be visible if outside counsel will be consulted. 

Whether working with an external investment banker or an internal M&A executive, you’ll need to prepare a Confidential Information Memorandum (CIM).

The following Subtask list will ensure you include all required documentation in order to present a comprehensive view of your company to potential buyers. 

CIM is also known as an offering memorandum or an information memorandum.

INFO: This task uses the Subtask feature. Subtasks are small lists of items that can be checked off in your workflow runs. Read more about Subtasks in our Knowledge Base.

INFO: The following task uses the Conditional Logic feature. Read more about it in our Knowledge Base.

This task contains two pathways:

1. If you’ve already been approached by a Buyer, then you’ll follow the pathway focused on making a deal with that Buyer.
2. If you haven’t been approached by a Buyer, then you’ll proceed through the bidding round stage. 

For each Buyer you’re considering, answer the following questions in order to determine if that Buyer is the right match for your company’s needs. 

INFO: The next task is an Approval. Approvals help streamline any processes that require authorization. Read more about Approvals in our Knowledge Base, or watch the video below. 

INFO: The next task utilizes a Stop Task. This stops the workflow run at a given point. No tasks past that point (or the workflow run itself) can be completed until the stop task is completed. Read more about Stop Tasks in our Knowledge Base, or watch the video below. 

When assembling your transaction team, it’s important to record their details in a central location. This makes it easier to locate in the future. 

The most basic transaction team should include:

• a transaction attorney
• a tax accountant
• a financial advisor

INFO: This task can be further customized using our Automations feature. In addition to the thousands of integration options available through Zapier, we also have first-party integrations with Salesforce, DocuSign, and others.

For more details, watch the video below, or read the following resources:

Process Street Knowledge Base: Automations
4 Workflows to Get Your Started with Automations
Webinar: Automations in Process Street

This task utilizes two specific workflow features: the Dropdown List field and the File Upload field. Read Getting Started: How to Use Form Fields for detailed instructions, or watch the video below. 

Use your compiled CIM to create a teaser you intend to send to potential Buyers. 

Keep a record of which Buyers you’ve contacted and when to help avoid confusion and improve transparency among the strategy team. 

Carefully evaluate every bid you receive. Remember you have no obligation to accept the first offer if you feel it isn’t appropriate.

Document the details of all meetings with the prospective Buyer.

Objectives

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Ideal Buyer

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Preferred Offerings

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Acceptable Offerings

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Deal-breakers

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You may find yourself conducting multiple negotiations during this stage. You need to document all correspondence and agreements with each Buyer while negotiations are ongoing.

BEST PRACTICE: It’s advisable to only pursue 2-3 Buyers at once. Mergers and acquisitions are complex processes that can easily consume all of your time, attention, and resources if you overcommit. 

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{{form.Negotiation_#2:_Buyer}}

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{{form.Negotiation_#3:_Buyer}}

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Your representative and the Buyer should work together to draft the definitive agreement. The final deal will not be signed until after the due diligence is completed. 

INFO: This task can be further customized using our Automations feature. In addition to the thousands of integration options available through Zapier, we also have first-party integrations with Salesforce, DocuSign, and others.

For more details, watch the video below, or read the following resources:

Process Street Knowledge Base: Automations
4 Workflows to Get Your Started with Automations
Webinar: Automations in Process Street

The due diligence process can take from 30-60 days. To facilitate this, ensure you’ve provided the Buyer with all relevant documents and keep in close contact throughout. 

Now that the definitive agreement has been signed, the deal is closed. The next step will be to coordinate with the Buyer’s integration team to assist with post-merger integration. 

Complete this task to finish the M&A strategy workflow.

• BCG: Post-Merger Integration
• DealRoom: Biggest Post-Merger Integration Challenges & How to Overcome Them
• DealRoom: The Ultimate Guide to Post-Merger (M&A) Integration Process
• DealRoom: Top 5 Reasons of M&A Integration Failures & How to Prevent Them
• Deloitte: M&A Integration/Separation/Divestiture Checklist for Day One Readiness
• HBR: Don’t Make This Common M&A Mistake
• HBR: The Big Idea: The New M&A Playbook
• IPM: A Matter of Approach: Avoiding M&A Pitfalls
• JITTA: A Framework for Understanding Post-Merger Information Systems Integration
• John Wiley & Sons: M&A Information Technology Best Practices, Appendix B
• Journal of Organization Design: Post-Merger Integration
• LHH: The Seven Worst M&A Mistakes and How to Avoid Them
• M&A Science: Common M&A Pitfalls and Problems
• McKinsey & Company: A Blueprint for M&A Success
• McKinsey & Company: M&A Strategy & Due Diligence
• McKinsey & Company: The Six Types of Successful Acquisitions
• Midaxo: M&A Guide: Integration
• Priori Legal: M&A Due Diligence Checklist
• Pritchett, LP: M&A Integration Strategy and Guiding Principles
• Pritchett, LP: The 5 Critical Elements of an M&A Integration Plan
• Process Street: 8 Critical Change Management Models to Evolve and Survive
• Process Street: How to Make a Change Management Strategy (and Defuse the Growth Time Bomb)
• Process Street: How to Prevent Project Failure With a Risk Register
• Process Street: Prioritization Matrix 101: What, How & Why? (Free Template)
• Process Street: Risk Mitigation: What It Is and How to Implement It (Free Templates)
• Process Street: The Ultimate Risk Management Guide: Everything You Need to Know
• Process Street: Why You Need a Risk Management Process (+ Free Template)
• Red Rocket: Preparing for a Due Diligence Process
• SmartSheet: The Ultimate Guide to the M&A Process for Buyers and Sellers
• Thomson Reuters: Information Exchange and Integration Planning in M&A: Antitrust

• M&A Target Search Process
• M&A Due Diligence Checklist
• M&A Acquisition Checklist
• Post-Merger Integration Checklist
• Employee Onboarding With Automations
• Employee Onboarding Checklist
• Employee Onboarding Quick Start
• Risk Management Process
• HIPAA Privacy Risk Assessment Checklist
• Risk Register Process Checklist
• Sustainability Risk Management Checklist
• Startup Due Diligence for a Venture Capitalist
• Private Equity Due Diligence Checklist
• Stock Purchase Due Diligence Checklist
• Property Acquisitions: Digital Marketing Assets
• Financial Audit Checklist
• Financial Planning Process
• Annual Financial Report Template
• Checklist for Writing an Operations Manual
• Employee Review Template
• Communication Plan Template Checklist