In my career as a Human Resources Executive, I frequently deal with top-level strategic situations, including planning mergers and acquisitions and recruiting executives to continue a company’s prosperity. Many peers in parallel fields often ask me what mergers and acquisitions entail, so I have answered common questions below.
Q: Are there different types of M&As?
Jeff Quade: Yes. Two types occur most frequently. In a “sell-side” deal, a company says, “We want to sell our business.” Sometimes these companies have a buyer in mind; other times, they need help selecting the best possible choice.
Q: What is the second type of deal?
Quade: With a “buy-side” deal, a company expresses interest in buying another company. Again, they might have a purchase in mind, or they might want help finding the best value for their investment.
Q: How does the process work?
Quade: It usually works in one of two ways. A buyer or seller might pitch to other companies, evaluating each, often resulting in an auction. In an instance where the buyer or seller has a target in mind, they might instead accept other offers, but focus on that one ideal target.