Merger and Acquisitions Documents Required

Running Head: MERGER AND ACQUISITIONS
MERGERS AND ACQUISITIONS
Name of the Student
Name of the University
Author Note

1MERGER AND AQUISITIONS
Letter of Advice
To,
General Council
Wesfarmers Group
Subject: Regarding giving advice related to documentation of Acquisitions and
Recommendation of transaction.
Dear Sir,
Merger and acquisitions are described as consolidation of the companies. Merger is
combination of two firms for forming one, while acquisition is described when one firm is
taken over by another. M&A is major aspects of the corporate finance world. This letter is
prepared with the intention to advice regarding entering and preparation of documentation, if
business has to be acquired by another business.1 Further, this letter includes the discussion
on factors that is required to be taken, when considering regarding acquisition of business or
shares of company. Lastly, recommendation will be given on due diligence.
Key Transaction Steps
 Making plan: This step includes looking for the reasons for buying a company. It
consists of finding the new markets, industry rolling-up strategy, getting the advanced
technology, market window strategy, getting the new personnel, synergy strategy and
strategy of geographic growth. Further, it also includes eliminating competition,
adjacent strategy of industry, diversification strategy and vertical integration strategy2.
1 Vivek Ghosal and D. Daniel Sokol, "Compliance, Detection, And Mergers And Acquisitions"
[2013] Managerial and Decision Economics.
2 Eliezer M. Fich, Tu Nguyen and Micah Officer, "Large Wealth Creation In Mergers And Acquisitions" (2018)
47(4) Financial Management.

2MERGER AND AQUISITIONS
It includes focusing on aspects of company, which is most valuable to the client and
shaping one’s offer around benefit.
 Building Acquisition Team: It includes building the team, which fulfills the roles of
executive manager, investment banker, acquisitions lawyer, expert of HR, IT
specialist and the public relations officer. These people works for providing merger to
public. It informs the customers and business partners about new merger.
 Research and Due Diligence: It includes two phases. At first stage public
information about company is checked to see if company fits the plans. Further, the
second stage includes meeting management of company and using the information for
answering the questions about products, staff, culture and more3.
 Making first offer: This includes making better first impression with the perfect
positive negotiations by the fair price offer.
 Negotiating Terms: This includes reaching agreement that ends in good merger of
the two countries.
 Write Up a Contract: The contracts are not end of the negotiations. The contract
lawyer records the negotiations.
Documentations Required
Wesfarmers Group wish for the acquiring the business. This requires Wesfarmers for
disclosing their intention and interest towards acquisition of Afterpay4. Further, this will also
help AfterPay for getting idea regarding intention of Wesfarmers. Hence, the documentation
required to be prepared during acquisitions includes following:
3 Chikashi Tsuji, "An Overview Of The Cross-Border Mergers And Acquisitions" (2015) 3(2) Archives of
Business Research.
4 Afterpay.Com (Webpage, 2019) "Home - Afterpay - Shop Now. Enjoy Now. Pay Later.",
<https://www.afterpay.com/index>.