1. What an acquisition really buys
M&A·Mergers and acquisitions: gaining control of another business through a deal. Restructuring reshapes ownership or business lines through sales, spin-offs, mergers or swaps.
Deals buy time, but synergy is an expectation, not revenue. It is easy to model and hard to realize.
2. The five-step process
Motive and screening
Write down why you buy: market, technology, license or team.
Due diligence
Verify business, financial and legal facts: real revenue, profit quality, hidden liabilities.
Valuation and terms
Cross-check methods; negotiate price, payment, earn-outs and retention.
Integration
The first hundred days decide the outcome: stabilize people and customers, then systems.
3. Valuation and goodwill
| Method | How it works | Best for |
|---|---|---|
| Comparable multiples | Apply P/E or P/S of similar firms | Stable profits with peers |
| Discounted cash flow | Forecast cash flows and discount for risk | Predictable growth businesses |
| Asset-based | Revalue assets minus liabilities | Asset-heavy or turnaround cases |
Cross-check the three methods; large gaps mean shaky assumptions. For premium prices, ask what earns back the amount above net assets.
4. What AI changes
- AI-assisted document review moves diligence from sampling to full coverage.
- Cross-verification of flows, invoices and market data exposes polished numbers.
- Integration stays human work: systems, teams and customers need real management.
5. The hundred-day window
Most deals miss expectations because of integration, not price. Stabilize key people and customers first, merge systems second, touch culture last. Restructurings follow the same logic: fix cash flow and control rights before debating price.