EXECUTIVE SUMMARY:
Structuring an M&A deal can be challenging both to the seller making an exit and the purchaser planning due diligence.
Consider among other things, the following:
(1) Stock (shares) versus asset deal
(2) Tax and legal implications
(3) Finance
(4) Etc
We are experienced M&A consultants. Can we help you? Need more info?
[email protected]
https://mergeacq.com/
ARTICLE:
When planning an M&A deal, structuring the deal matters.
How are M&A deals typically structured?
First, the parties need to decide what is actually being sold? A company or group of companies? Specific income-generating assets? A going concern i.e. a distinct business operation? Or a start-up with perhaps little more than a proof of concept? Whatever is being sold will need to be carefully defined in the deal agreement with no room for doubt or uncertainty.
There are many ways to cut an M&A deal. Do you want a share sale? An asset purchase? A management buyout by existing management? A management buy-in by a new hungry but experienced team? A joint venture rather than an outright purchase/sale? Or perhaps just an exclusive license or supply contract? And should contingent consideration be used in case any surprises emerge?
Much will depend on tax, who is the stronger party and the overall circumstances.
Methods of sale include a regular sale, a trade sale by a financial institution or professional firm, an auction. A separate possibility may be an initial public offering on a stock exchange (IPO) where the founders sell their shares over time on the open market.
Next Steps:
- Contact us if you are looking for an M&A candidate to buy or sell.
- Contact us if you have your candidate and want to prepare for a deal.
We are M&A advisors and coordinators. Please note, we maintain complete confidentiality and aim to avoid all conflicts of interest. If you hire us, the other side cannot. Always consult legal and professional advisors in each country at an early stage and conduct sufficient due diligence procedures before signing anything. We will be happy to help you steer the process.
Conclusion: When structuring an M&A deal, consider tax and legal aspects, financing the deal and which party has the upper hand and the overall circumstances. This matters both to the seller making an exit and the purchaser planning due diligence.
For more information, please contact us at:
Email: [email protected], cell: +972-54-6449398, www.MergeAcq.com
© All rights reserved. Leon Harris 8.12.24