An M&A process consists of target identification, valuation, letter of intent, due diligence, contract negotiation, regulatory approvals (for example from the Competition Authority) and closing. Successful deals require post-closing integration to be planned from the outset.
Related terms
Financial due diligenceA detailed review of the target company's financial position, profitability, indebtedness and risks before an acquisition or investment.Share purchase agreement (SPA)The agreement governing the price, payment terms, representations and warranties, indemnities and closing conditions in a share transfer.ValuationEstimating the monetary value of a company, share, asset or liability at a specific date and for a specific purpose.Business combinationA transaction or event in which an acquirer obtains control of one or more businesses.Completion accountsFinancial statements prepared as at the closing date of an acquisition, through which the final price is set by net debt and working capital adjustments.Cost of capitalThe minimum rate of return investors expect from an investment in return for the risk they take.
Last updated: October 22, 2026 · This definition is for general information only.