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February 9, 2023

Managing the Entire M&A Process from Start to Finish Part 2

Managing a deal from start to finish requires a strategic approach and the ability to navigate the nuances of each phase. In this second part of our series on how to manage the entire M&A process from start to finish, Andy Wijaya, Senior Director of M&A at KLA, delves deeper into the specific steps and considerations involved in the process.

"There's no point in buying a company if the key talent does not sign an employment agreement." - Andy Wijaya

Formulating the M&A Strategy

Formulating a strategy for M&A can be challenging, as it's impossible to know every target company in the market. Andy suggests that being open to inbound offers and creating a strategy around them can be beneficial. 

Sometimes, an attractive target may come along wanting to sell their business. Being open to these opportunities can allow a company to capture them. In this targeting phase, it’s good to have a high-level integration plan. An integration plan provides a clear objective during engagement and helps teams learn from the target company.

Working with the deal team

Deals require confidentiality, and as a result, corporate development must only involve relevant people in each process. As the deal progresses, more people will become involved. Communicate sufficient information to the relevant people to keep them focused on execution. This can be achieved by regular meeting cadence to keep everyone aligned.

Before issuing a letter of intent, a deal lead needs to facilitate discussions where stakeholders must first convince themselves if they want to acquire the target.

Retaining key people

Retaining key people is essential to maintaining the value of a deal. Acquirers must understand who the key talents are and make retaining them a top priority. If there is retention risk, start planning for knowledge transfers and redundancies early on. 

The best way to retain people is to provide them with a positive experience and learn from them for better integration.

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