After the complete analysis and review of the market performance of the target company, the second step is the proposal for a merger or acquisition. As a rule, this proposal is made by issuing a non-binding offer document.
When a company decides to acquire the target company and the target company agrees, it conducts exit planning. The target company plans to exit at the right time. It considers all alternatives, such as outright sale, partial sale, and others. The company also performs tax planning and considers reinvestment options.
After finalizing the Exit Plan, the target firm involves in the marketing process and tries to achieve highest selling price. In this step, the target firm concentrates on structuring the business deal.
In this step, the purchase agreement is made in case of an acquisition deal. In case of Merger also, the final agreement papers are generated in this stage.