Mergers and Acquisitions Timeline
Most large corporations require approximately 9 months to identify an acquisition target. Once a corporation has defined its strategy and identified a target area for acquisition, it typically takes about 9 months to identify the players in the space, conduct preliminary due diligence, gain necessary internal approvals, and negotiate an LOI (letter of intent). Once the LOI has been signed by both parties, it will usually take 1-2 months to complete due diligence and negotiations so that a Definitive Agreement can be executed. Including this time, a corporation may take as long as a 1 year to complete an acquisition.
Tags: Acquisition, LOI, M&A, Rule of Thumb