What is the domain model for M&A?

The domain model will consist at least of the following parts:

A data model that shows the data objects that are involved in M&A transactions and processes.
A Hierarchy of tasks in different phases of M&A Processes.
APIs for data objects and tasks.

The domain model is a programmable model. This means it is available electronically and can be navigated and displayed as you wish. It is implemented in a set of Prolog facts and rules.

Give me an example for a task in the M&A domain model

Here is an example of the documentation of each task. The task Review Merger Integration Project works on data objects:

 Integration Project Plan, Integration Budget, Stakeholder,

Integration Success, Integration Project, Integration Project Resources.

It has the goal (that describes the result):

Integration project: tested and verified

and the objectives, which describe the qualities of the result:

 Integration success: maximized

 Quality: maximized

It has the following task description:

We review the structure and behaviour of the merger project. It is important to remember that the word "project" means that we have a professional management of integration by professional project managers who are experienced with complex projects and equipped with the skills of a certified project manager. We should also set up a project steering committee that has comprehensive competencies and can make decisions quickly.

The word "project" means that we have a project structure plan with tasks to be performed in the project. Buying companies that make frequent acquisitions have a project structure plan template that they adapt to each of the new merger integration projects. This ensures completeness and also allows a correct assessment of whether we have sufficient resources and whether the resources know what to do in the merger.

But we also focus on providing answers to questions like: Do we have the right resources for the integration tasks in mergers? Are the resources able to perform the tasks assigned to them? Do the resources have adequate social skills to guide people and convince them to integrate?

What about the data model inside the M&A domain model?

Each of the data objects used by tasks in the M&A domain model are connected in a domain data model. So let us have a look at Integration Project Plan and how it is connected in the data model. Currently the data model contains 376 data objects and many more relationships.

The data model can be used for several purposes. It is used as part of the documentation of tasks and allows a user to understand the task at hand better. Secondly, it can serve as part of a M&A domain API definition that allows to integrate several digital tools within the M&A process.

Example of a data object and its relationships

The task Review Merger Integration Project works on a data object called integration project.

on the left side you see other data objects that have relationships that are incoming. On the right side you see outgoing relationships pointing to other data objects. This data object relates to a stakeholder and an integration plan. So every integration plan has at least one integration project. The integration project might have several risks associated with it. And the integration project has an integration plan.

Since the data model contains 916 data objects, it provides a comprehensive model for implementing tools for the M&A process.

This is an excerpt of my book “Automation of Mergers and Acquisitions“.

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