How long does it take to finalize an acquisition?

Corporate mergers and acquisitions can vary considerably in the time they take to be completed. This length of time may span from six months to several years. There are a number of individual steps that need to be completed successfully by two public companies before they are legally combined into a single entity.

What happens when an acquisition closes?

Closing refers to the completion of a transaction and the transfer of ownership. It is the date from which the acquirer has actual control over the assets or the business. Once a deal is signed, the parties involved need to undertake all actions that are required for a successful consummation of the deal.

What is a term sheet in an acquisition?

A term sheet is a mostly non-binding document signed by the target and the prospective buyer that describes the major terms of the proposed acquisition. While most term sheets are non-binding, they often contain binding provisions regarding non-soliciation, exculsivity and confidentiality.

How long does it take for a company to get bought?

Based on our in-depth market knowledge of a wide range of business acquisitions, the process to buy a company will take between 6 and 12 months. This is regardless of the size of the business, though larger acquisitions can take longer to complete. Bear in mind that a year-long timescale will cover everything.

What happens after term sheet?

Post-term sheet diligence (aka confirmatory diligence) consists generally of “check the box” style inquiries on both the business and legal side. Confirmatory business diligence may involve things like customer calls, deeper dives into particular key metrics and follow up questions on your operating plan and models.

How long does it take to close a merger and acquisition?

Mergers and Acquisitions Can Take a Long Time to Market, Negotiate, and Close Most mergers and acquisitions can take a long period of time from inception through consummation; a period of 4 to 6 months is not uncommon.

Should I be worried about an acquirer signing a term sheet?

An investor or an acquirer going dark after signing a term sheet would make me very worried. Our acquisition term sheet was actually negotiated over the Christmas holidays. When people are motivated, they should be eager to keep the ball rolling.

What happens after the announcement of a merger?

Announcements and communications of a merger also include details of a shareholders’ vote which typically occurs at either a special meeting or the company’s annual shareholder meeting. Assuming the required votes are obtained from both sides, the merger then moves to the regulatory approval phase.

How long does it take to complete the M&A process?

The mergers and acquisitions (M&A) process has many steps and can often take anywhere from 6 months to several years to complete.