Mergers & Acquisitions (M&A)
Operational Support throughout the M&A lifecycle
Executing an efficient, timely and risk averse Merger & Acquisition (M&A) process that meets expectations of the buyer and seller is our ultimate goal. Red Sky Intelligence can take responsibility to manage all phases of the M&A process, as an internal in-house resource or as an external resource. In unique situations, we can participate as a supporting resource or third-party advisor.
With our confidential and secure methodology, we use a cloud based system to manage and coordinate deal flow, stakeholders and deal documentation.
Our preferred process is described below:
- Acquisition strategy - Using an investment thesis we define what type of acquisition you are seeking to pursue, what the value-add will be and how an acquisition will be pursued
- Search criteria - we compile a list of potential targets and using several channels, we start our search
- Acquisition planning - We hold conversations with target companies to explore their openness to a merger or acquisition and to gather non-confidential high-level
- Teaser/Executive Summary - A two page document is compiled for the buyer, showing high-level financials and pertinent company information to help the buyer decide if the target is worth learning more about
- Confidentiality Agreement - If the target is open to progressing talks further, a confidentiality agreement is signed which allows for an exchange of confidential information
- Valuation - Upon receipt of company financials and operations information, we perform a financial analysis and high-level due diligence to ascertain if the target company meets pre-defined criteria. This leads to a confidential information memorandum/dealbook which is presented to management (buyer side)
- Negotiations & management meetings - If the target company meets expectations and criteria, an offer (stock or asset sale) is compiled and sent to the seller. If the offer is accepted, we proceed to Due Diligence. Meetings between the buyer and seller are arranged. If both parties cannot agree, then, discussions are ceased.
- Due Diligence - If an offer is accepted, we initiate detailed due diligence which is used to evaluate and confirm every aspect of the businesses operations and financials
- Definitive purchase & sale contract - A purchase and sale contract is compiled and sent to the seller for review if no major issues arise in due diligence.
- Financing - Final details for financing arrangements are clarified and actioned
- Post-Merger Integration - We work with both parties to start the integration of merging the acquired target into the buyers portfolio
Deliver What Matters
Building and running an agile business is the goal for every business owner, stakeholder, and investor. This mindset allows them to operate and adjust their operations and investments in a world that changes rapidly, while continually delivering value to their end customers.
Applications For Your Transactions
The methodology described can be used in many aspects of your business including:
- Execution & delivery of technical & financial studies and reports
- Team, vendor & stakeholder management to ensure delivery of timely, under budget solutions and deliverables
- Implementation of Agile methodologies to deliver what matters and reduce deal risks
- Execution and management of third-party due diligence to reduce deal risks
- Post-Merger Integration or transformation and turnaround
Our approach towards working with clients and delivering results is the renowned Agile methodology.
Every challenge is time-sensitive, unique, with unknown factors and constraints. This approach helps teams, and, managers deliver successful, timely results and deliverables by tackling tasks in pre-defined increments. Peter Doherty, Red Sky Intelligence
Acting as a resource to clients, Red Sky Intelligence provides cost-effective and quality agile M&A deal flow management. Depending on the situation, we lead or supervise the scope. We offer our customized, short or long-term support by working in-house with your people or as a remote resource, working in tandem with your resources.
We take ownership of the deal process, deliverables, and communication frameworks including administration of collaboration tools.
We believe in the three pillars of Scrum — Transparency, Inspection, and Adaption. — for the team to maximize value, and results for clients. Peter Doherty, Red Sky Intelligence
Benefits of Agile
The Agile Methodology and its effectiveness for deal execution, and delivery is built upon a set of values and, principles, which was popularized by the software industry in the early 2000s. This methodology allows teams to prevail and, overcome challenges to achieve mission goals. The Agile Method focuses on:
- Individuals and interactions over processes and, tools
- Working software over comprehensive documentation
- Customer collaboration over contract negotiation
- Responding to change over following a plan
Today, this approach has been adapted and adopted by non-tech teams in many organizations worldwide.
How We Apply This Approach In Practice
At Red Sky Intelligence, we apply the Agile approach in practice by using the Scrum framework, as outlined in the following steps below. These steps are followed in a loop until all deliverables/tasks are satisfactorily complete.
A team’s success with Scrum depends on five values: commitment, courage, focus, openness, and respect. — Scrum Guide
- Backlog - A complete list of tasks for the entire deal is created
- Sprint planning - A team meeting to define the work to be executed in a defined period, usually 2 weeks depending on the scope of work
- Sprint - A Kanban board displays tasks (pulled from the backlog) that the team commits to during the defined period
- Daily Scrum - The team works on tasks assigned and displayed on the Kanban board. A 10-minute daily standup meeting is held with all team members to discuss progress and roadblocks
- Sprint Review - At the end of the current sprint, a review is held with the team, and stakeholders to confirm completed or in-completed tasks
- Sprint Retrospective - A retrospective meeting is held after the sprint to discuss what went well, what went wrong, and what could be improved, for upcoming sprints
- Vandersluis, C. (2014). Apply Agile methodology to non-software enterprise projects. Paper presented at PMI® Global Congress 2014—North America, Phoenix, AZ. Newtown Square, PA: Project Management Institute.
- Agile at Scale, Darrell K. Rigby, Jeff Sutherland and Andy Noble. Retrieved March 18, 2020 from
- What is Scrum?, Scrum.org, Retrieved March 18, 2020