Mergers & Acquisitions: If Exxon were to acquire BP, what would be the outcome?
If Exxon were to acquire BP, what would be the outcome?
Here are the guidelines Do not need responses for the entire 1-10. just 6-9
Project -- Actual Merger
1. Building the Business Plan
a. External Analysis
b. Internal Analysis
c. Define mission statement
d. Business strategy
e. Implementation strategy
f. Functional strategy
g. Establishing strategic controls
2. Acquisition Plan
a. Timetable
b. Resource/capability review
c. Management preferences
d. Search plan
e. Negotiation strategy
f. Determine initial offer price
g. Financing plan
h. Integration plan
3. The Search Process
a. Initiating the Search
b. Brokers and Finders
4. The Screening Process
a. Market Segment
b. Product Line
c. Profitability
d. Degree of Leverage
e. Market Share
f. Cultural Compatibility
5. First Contact
a. Alternative approach strategies
b. Trust and relationship building when time is not critical
c. Discussing value
d. Preliminary legal documents:
i. Confidentiality agreements
ii. Term sheets
iii. Letter of intent
6. Negotiation
a. Negotiating strategy
b. Concurrent activities
7. Developing the Integration Plan
a. Use due diligence to determine post-closing sequencing of events necessary to realize potential savings and revenue enhancements
b. Resolve contract-related transition issues in purchase agreement
c. Ensure contract closing conditions include those necessary to facilitate integration (e.g., employee contracts, agreements not to compete)
d. Develop post-merger integration organization consisting of both target and acquirer managers
8. Closing
a. Obtain all necessary consents
b. Complete definitive agreement
9. Implementation Postclosing Integration
a. Communication plans
b. Employee retention
c. Satisfying cash flow requirements
d. Employing best practices
e. Cultural issues
10. Conducting a Postclosing Evaluation