Merger & Acquisition Focus
Showing 193–208 of 244 results
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Ask the Advisor – Q: What does it mean to “buy a balance sheet”?
February / March 2010
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 422
Abstract: In an uncertain economic climate, bank financing for strategic growth initiatives can be hard to find — even for financially healthy companies. Buyers having trouble attracting lenders could consider “buying a balance sheet,” or acquiring a cash- or asset-rich company it has little strategic use for to use as loan collateral. This strategy can not only benefit buyers, but also sellers with a decent cash reserve or significant liquid assets, who can then negotiate for a higher-than-market price and favorable deal terms.
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8 first-time seller mistakes
February / March 2010
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 732
Abstract: If they’re not careful, business owners selling their first company can make serious mistakes that jeopardize the deal or result in a lower sale price. Selling successfully requires extensive advance preparation and strategizing. It’s important to avoid a number of mistakes, including incorrectly estimating the business’s value, misunderstanding the buyer’s motivation and revealing too much confidential information to the wrong buyer.
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Initial steps to integration success
February / March 2010
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 668
Abstract: M&A deal participants usually focus their energy on such activities as pricing, due diligence and negotiations. Numerous studies and ample anecdotal evidence suggest, however, that poor integration is the most common reason that mergers fail to meet their objectives. Buyers need to get the process rolling before they tell employees or publicly announce the deal. It’s necessary to develop an “integration philosophy” and then form a team to implement a process consistent with that philosophy. Integration isn’t a monolithic task, but instead a collection of smaller, but critical, activities involving employees, management, technology, products and clients.
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Looking up – An economic recovery can be your selling opportunity
February / March 2010
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 795
Abstract: Although there’s some disagreement over whether the country’s recession is over, the future is finally beginning to look brighter for the M&A market. Corporate buyers and private equity funds that have bided their time building cash reserves are expected to re-emerge. For those who’ve been waiting to sell and are well positioned, this article shows how they might overcome financing barriers. A sidebar discusses how sellers can compete for the limited pool of prospective buyers.
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Ask the Advisor – Q. Should my company consider a “virtual merger”?
Year End 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 467
Abstract: Even when the potential benefits of a merger are enticing, it may not be feasible because of poor economic conditions, lack of financing or regulatory issues. So some companies are opting for a “virtual merger” in which two businesses combine assets or operations yet retain at least some financial and managerial autonomy. A virtual merger can set the stage for a future merger by beginning the integration process now.
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Prepare for the worst with a MAC
Year End 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 576
Abstract: In a business acquisition, a material adverse change (MAC) clause can provide a buyer with an escape hatch if an extraordinary event adversely affects the seller’s projected performance. Although MACs don’t guarantee that exits from bad deals will be without penalties, they can be a useful tool in desperate situations. And MACs can serve as a negotiating tool; the buyer and seller can discuss what events constitute an adverse change as a way to allocate risk between both parties.
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Tough call: Deciding to write off goodwill
Year End 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 424
Abstract: During economic downturns, a company may face some major goodwill impairment. For those thinking about selling, such impairment could affect an M&A deal’s value. Companies in this position must decide whether to write off goodwill — which has both pros and cons. Companies that write off goodwill usually reason that it’s a better alternative to having to adjust their company’s overall book value downward. But prospective buyers may oppose it for potential regulatory or legal issues. More often, buyers prefer that their target write off goodwill before negotiating a sale price.
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Good financial projections can help seal your deal
Year End 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 956
Abstract: Accurately projecting future earnings for a prospective buyer is critical if a business seller hopes to close an M&A deal successfully. This article discusses three of the most common financial projections used, and lists several data points that might bear special scrutiny. While no forecast will be perfect, an enterprise resource projection system can improve accuracy, and communications with the buyer can help keep the deal alive. A sidebar shows how financial projections can also help a company evaluate its health and reverse unwanted trends.
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Ask the Advisor – Q. Should I sell my company in an auction?
October / November 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 434
Abstract: To attract substantial buyer interest when putting a business up for sale, sellers might want to consider an auction. This competitive sale process is designed to get the best possible price and most attractive terms. Advantages include speed, higher prices, and the presence of backup bidders.
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How to sell your sale to employees
October / November 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 604
Abstract: Just because selling owners are thrilled to have found a good buyer doesn’t mean their employees will greet the news with the same enthusiasm. In fact, there may be negative reactions and even strong resistance. Left unchecked, employee dissatisfaction can depress a deal’s ultimate value — and in extreme cases even cause its collapse. So it’s important to plan how to sell the sale of the company to these critical stakeholders, which includes communicating with candor and introducing high-performing individuals to their new managers so they can initiate a working relationship before the deal closes.
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Performance anxiety? Earnouts can help
October / November 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 713
Abstract: Given the current state of the U.S. economy, it’s not surprising that both business buyers and sellers are entering M&A transactions with increased trepidation. One way to get the deal done is by using an earnout, which sets a company’s purchase price according to how well it performs after it’s sold. It can be especially useful in bridging valuation gaps or overcoming negotiation stalemates in which the parties disagree about the company’s future profitability. But there are potential pitfalls, so participants need to ensure the agreement protects their interests and anticipates potential conflict.
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Manage risk the right way
October / November 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 750
Abstract: Risk management has become a big concern for both business buyers and sellers during the recent economic downturn. More than ever, companies pursuing an M&A transaction need to adequately account for the possibility that their deal will fall through before it’s complete or fail to meet postmerger objectives. There are many different kinds of risks, but this article shows that there are also a number of strategies buyers and sellers can take to minimize the risk of catastrophe. A sidebar looks at two ways to prevent stock market volatility from destroying a deal between public companies.
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Ask the Advisor – Q. How should I juggle my succession plans with a possible merger?
August / September 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 502
Abstract: Succession can be difficult for any business, whether a founding owner is ceding power to the next generation or a company has unexpectedly lost its CEO. Add the many stresses of an M&A and the situation becomes even more challenging. The best strategy is to take the issues one at a time and resolve a company’s succession issues before considering a merger. This column explains how businesses might devise a plan, put it in writing and communicate it to stakeholders.
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Take your public company out of the public eye
August / September 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 756
Abstract: As the economy continues to struggle and financial markets roil, many public companies can expect their stock prices to be extremely volatile, unsettling shareholders and making long-term strategic planning virtually impossible. Now might be a good time to consider getting off the rollercoaster by going private. This article discusses a number of pros and cons, along with options public companies might pursue if they decide to go private.
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Buyer’s market – What a changing M&A landscape means
August / September 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 793
Abstract: In the earlier part of this decade, business sellers enjoyed an advantage over buyers. That’s not the case today. M&A activity has dried up across the board, and some sellers may have trouble attracting even one reasonable bid. Companies hoping to sell or buy in the near future need to understand how the M&A landscape has changed in the past few years. There are a number of steps that both buyers and sellers should consider to successfully complete an M&A transaction.
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Dealing with debt – Manage your company’s liabilities before you try to sell
August / September 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 906
Abstract: Given the current economic environment, prospective business buyers generally are wary of assuming additional debt when making an acquisition. So sellers must address the issue of debt — both the amount of debt on their balance sheets and the nature and terms of this liability. This article lists several solutions that may be available for improving a company’s debt profile, depending on its circumstances. A sidebar points out that buyers, too, must watch their balance sheets.