Understanding the Know-How and Milestones of Corporate Transactions
A Guide for Beginners
I. Introduction
Mergers and Acquisitions (M&A) transactions in Indonesia are intricate processes governed by a range of legal and regulatory requirements. This guide provides a step-by-step overview of M&A transactions, aimed at helping newcomers understand the key stages and milestones involved. The focus is on providing a comprehensive view of the entire transaction lifecycle, including pre-transaction planning, the transaction process, and post-transaction obligations.
II. Pre-Transaction Phase
Valuation
In the merger and acquisition process, it is essential to have an accurate valuation of the target company. To achieve this, the following steps should be taken:
Closing Financial Book
The financial closing date should be agreed upon between the seller and buyer, providing a clear timeline for when the financial data will be locked in for evaluation. Once the date is set, the target company must prepare in-house financial reports.
In-House Valuation
The objective is to conduct an initial internal valuation to provide a preliminary estimate of the company’s worth. This…