í´ì¸ M&Aì ë²ì ìì - Sullivan & Cromwell
í´ì¸ M&Aì ë²ì ìì - Sullivan & Cromwell
í´ì¸ M&Aì ë²ì ìì - Sullivan & Cromwell
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Summary: Key Elements of<br />
Acquiring a U.S. Public Company<br />
continued<br />
Preparatory<br />
Phase<br />
Approach<br />
Target<br />
and reach<br />
agreement<br />
to proceed<br />
Conduct<br />
due<br />
diligence<br />
Negotiate<br />
definitive<br />
terms<br />
Announce,<br />
implement<br />
and close<br />
transaction<br />
• Perform initial<br />
valuation of Target<br />
• Prepare for due<br />
diligence effort<br />
• Assess defensive<br />
profile<br />
• Assess financing<br />
availability<br />
• Assess other<br />
potential bidders<br />
• Review ―gunjumping‖;<br />
4(c) issues<br />
• Preliminary<br />
assessment of<br />
possible regulatory<br />
issues (antitrust;<br />
CFIUS; etc.)<br />
• Determine means to<br />
approach Target<br />
management<br />
• Determine bid range,<br />
deal structure,<br />
timing, social issues<br />
• Negotiate /execute<br />
confidentiality<br />
agreement/standstill<br />
• Assemble due<br />
diligence team<br />
• Establish due<br />
diligence timetable<br />
• Seek exclusivity (?)<br />
• Review data room<br />
• Verify valuation<br />
assumptions<br />
• Assess potential<br />
liabilities<br />
• Assess regulatory<br />
risk<br />
• Management<br />
presentations by<br />
Target<br />
• Review benefit plans;<br />
benefit costs<br />
• Revise bid if<br />
necessary<br />
• Obtain appropriate<br />
Board approvals<br />
• Negotiate definitive<br />
agreement<br />
• Negotiate any<br />
executive<br />
arrangements<br />
• Develop strategy<br />
for communication<br />
to investors and<br />
rating agencies<br />
(if applicable)<br />
• Secure committed<br />
financing if needed<br />
• Don‘t disclose<br />
until deal signed<br />
(absent leak)<br />
• Obtain definitive<br />
Board approval<br />
• Tender offer vs.<br />
merger<br />
- Prepare SEC disclosure<br />
documents<br />
- File disclosure<br />
documents with SEC<br />
- Respond to any SEC<br />
comments<br />
• Send disclosure<br />
documents to<br />
Seller shareholders<br />
• Obtain third party<br />
approvals/ consents<br />
• Shareholder<br />
vote/tender<br />
• Antitrust; other<br />
approvals<br />
• Close transaction<br />
72
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