What Should You Expect When Going Through an M&A Deal?

Thinking about a merger or acquisition? One thing many business owners underestimate is what the process actually looks like — how long it takes, where the sticky spots are, and what you should be prepared for. Let’s walk you through the journey so you’re not blindsided.

1. Define Your “Why”
Every successful M&A starts with a clear purpose. Whether you’re doing it to gain market share, access new customers, acquire intellectual property, or boost efficiency, knowing why you’re doing this sets the tone for everything that follows. 

2. Find the Right Target
Next: target identification. This means hunting for companies that align with your goals, culture, and value proposition. And if you’re doing something more complex (add-ons, subsidiaries, triangular mergers), this step can involve extra moving parts.

3. Valuation & Negotiation
Once you’ve found a target, the conversation shifts to numbers and terms. Both parties will dig into financials, market conditions, and yes — culture and fit — to agree on price, payment terms, and contingencies. Cleaning up the documents and legal paperwork follows.

4. Due Diligence
Once you’ve found a target, it’s time for the close-up. Detailed due diligence awaits: financial records, contracts, legal standing, operations – uncovering surprises before they derail you.

5. Financing & Restructuring
Before you can officially close, you’ll likely need to sort out the funding: debt, equity, mixed structures. Plus, there might be restructuring — adjusting ownership structure, refinancing operations, handling any legal filings (like UCC forms).

6. Closing the Deal
This is the moment when the paperwork, the signatures, and the approvals are all wrapped up. Once that’s done, you’re technically an owner (or merged entity).

7. Integration
Can you combine two companies and make them work as one? That means aligning systems, culture, processes, customers, and employees. If you limp out of the gate, you’ll lose value fast.

What You Should Be Ready For

• It’s not quick. These stages take time. Patience matters.

• Each step has risk: weak due diligence = hidden liabilities, bad target fit = culture breakdown, bad financing = cash-flow strain.

• The better you define strategy, target profile, process, and integration up front, the smoother it goes.

An M&A transaction is a journey. Masterworks Capital can help navigate.