M&A process explained: From strategy to closing – The complete guide

M&A process explained: From strategy to closing

The M&A process is one of the most complex things companies do. Whether you are selling (sell-side) or acquiring (buy-side) – the process has 6 clear phases.

The 6 phases of M&A

1. Strategy & Target Definition: What do we want to acquire/sell to whom?
2. Target Screening & Outreach: Who fits? Establish initial contacts
3. Due diligence: Digging a deep hole into their finances, contracts, processes
4. Valuation & Offer: How much is a fair offer?
5. Negotiation & SPA: Negotiate detailed changes, share purchase agreement
6. Integration & Closing: Bringing the journey together, regulatory sign-off

Sell ​​side vs buy side

Sell-side advice (you sell):

• Perfecting the equity story
• Build a buyer list (strategic buyers + financial buyers)
• Prepare due diligence (buyers will ask)
• Make valuation defensible
• Build a data room

Buy-side advice (you buy):

• Target screening (where fits geographically/strategically?)
• Deep commercial due diligence
• Financial due diligence (numbers correct?)
• Legal due diligence (contracts, IP, liabilities?)
• Valuation & Negotiation
• Integration planning

The critical documents

• LOI (Letter of Intent): Non-binding, gives direction
• SPA (Share Purchase Agreement): Binding, 100+ pages, defines everything
• Data room: All relevant documents for due diligence process

Typical timeline

• Phase 1: 1-2 months
• Phase 2: 1-2 months
• Phase 3: 4-8 weeks
• Phase 4: 2-3 weeks
• Phase 5: 4-8 weeks
• Phase 6: 2-4 weeks
• Total: 4-7 months for a standard M&A

Complex M&A (with regulation, >€100M value) can take 12+ months.

Read also Due diligence checklist and Exit strategy.

Daniel Huber

Founder & CEO, Timber Coin LLC