STAGES OF MERGER AND ACQUISITION

1. Corporate Strategy Development – this strategy is concerned with the ways of optimizing the portfolios of businesses that a firm currently owns. And how this portfolio can be changed to serve the interests of the corporation shareholders. Merger and acquisition serve the objectives of achieving strategies of both corporate and business. The objectives depend on the conceptual and empirical validity of the models upon which corporate strategy is based. Corporate strategy has evolved in recent years through several paradigms. Like industry structure-driven strategy, competition among the strategic group, etc.
2. Organizing for Acquisition – the observed failure of many mergers and acquisitions may be the firm lacks the organizational resources and capabilities. It is also likely that the acquisition decision-making process within firms is far away from the models of economic rationality. This is the stage where the firm lays down the criteria for potential targets of acquisition. This is consistent with the strategic objectives and value creation logic of the firm's corporate strategy and business model.
3. Deal Structuring and Negotiation - this stage consists of the following:
   • Value the target of the companies.
   • They decide the advisers like investment bankers, lawyers, accountants, etc.
   • Obtaining and evaluating the target and as well as from other sources.
   • Performing due diligence
   • Determining the range of negotiation
   • Negotiating the positions of senior management.
4. Post-Acquisition Integration – the objective is to put in place a managed organization that can deliver the strategic and value expectations that drove merger and acquisition in the first place. The integration process also must be viewed as a project. The firm must have necessary project management capabilities and programmed with well-defined goals, deadlines, teams, performance benchmarks, etc
5. Post-acquisition Audit and Organizational Learning - The importance of structure learning to the success of future acquisitions desires abundant bigger recognition, given the high failure rate of acquisitions. Post­-merger audit by internal auditors may be acquisition specific likewise as being a part of the associate annual audit. the interior auditor includes a vital role in making certain structure learning and its dissemination.

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