Mergers

Merger Process:

A successful merger begins with the vision of creating a win-win for all parties. It ends with well with the implementation of a transition plan. Cathedral utilizes the following approach in the merger process:

1. Assess and Prepare:
• Determine how the merger fits with each company’s strategy.
• Review the identified party(s).
• Determine the vision of the companies to merge and how together growth will be attained.
• Determine the potential structure of the organization for management, economics, and ownership.
2. Package:
• Create a merger package that shows the new entity and how the pieces come together.
• The development of a model supplies the economic picture.
3. Negotiate and Close.
• Determine the compensation and company structure.
• Design Term Sheet which includes a Buy-Sell Agreement.
• Close the transaction.
• Implement the transition plan through the structure of Cathedral’s Board Services program.

Case Study: Three small consultant/advisor professional service firms merged to create a successful entity with 40% growth over three years. Cathedral helped the partners create a shared vision, determine the economics, and document these in a Buy/Sell Agreement.