The M&A process has a number of distinct stages and typically takes 6 to 10 months to complete.
There are strategic and financial options. The right buyer is the one that benefits the most from the purchase.
Before proceeding down the M&A path, here you can familiarize yourself with the terminology and typical documentation used in the process.
Non Disclosure Agreements (NDAs, also called CAs for Confidentiality Agreements) are contracts that stipulate that information received from a counterparty will only to be used for the purpose as defined in the NDA and that it will not be used as a basis for competitive tactics or shared freely with others…
Milestones in a sale process are outlined in the following chart.
Having said that, the following is an actual example of a divestiture of a private company…
The determination of the closing amount of working capital is always a point of negotiation in an M&A transaction. Simply put; working capital is current assets minus current liabilities and is…
Many owner-entrepreneurs are cautious about exploring the benefits and opportunities Private Equity (“PE”) can bring to a growing business…
What are buyers looking for in acquisition targets? The objective of an acquisition is to create value. This is accomplished by improving profitability and/or reducing risk; both enhance earnings quality and drive value.…
Simply put, companies with an ability to pay and an interest in paying a premium…
In “How Does an M&A Advisor Add Value to the Divesture Process?”, I noted that M&A advisors typically charge between 3% and 7% as a success fee for managing the sale process for a company. The question I addressed then was, will engaging an M&A advisor improve your expected sale value by at least 5%?…
There are four phases of progressive information release to smaller and smaller audiences in the acquisition/divestiture process…
Unsolicited offers tend to come at inopportune times. While some are actually opportunistic, most come out of the blue when the potential seller is not ready to receive them.…
Public company take-over bids typically consist of all cash or a combination of cash and shares. Consideration in private company acquisitions will usually include a sizable portion in cash (50 to 100%) but will often include an unsecured note and/or an earn-out as well.…