This year, a lot of mergers and acquisitions (M&A) ended up falling apart. However, even though this year was not as strong as the prior year, there were still plenty of high value transactions. There continues to be consolidation among firms in technology, healthcare, life sciences, and communications, but plenty of other industries saw some fairly large deals as well. Here are some of the more noteworthy transactions that occurred:
Many entrepreneurs create startups with the hope that in the future, their business will be acquired. For young companies, an acquisition is an incredibly exciting achievement. It is a time in which you are assured that the startup you imagined, built and nurtured was, in fact, a successful business venture. Your years of hard work and perseverance through the hurdles and the doubters has brought you to the thrilling realization of your business being valuable and sought after.
Due diligence is a critical phase of a lot of business transactions, especially when it comes to mergers and acquisitions. Of course, due diligence investigations are also of tremendous importance in the healthcare sector, as the associated transactions are quite often of enormous value. Although the due diligence process really should not vary too drastically from one sector to the next, certain industries do have specific ways of doing things. Here are some tips on how to do due diligence for healthcare:
Venture capital (VC) has been and continues to be critical to the growth and success of countless startups. Most VC firms create impressive funds with a plan to invest in innovative business ideas, and have a lofty goal of selling those interests at a high return after about ten years. This may seem like a fairly long time, but it is actually a relatively short timeframe considering the typical length of a lot of other investment vehicles. One of the benefits of the VC life cycle is that it can help those seeking VC funding to assess prospective investors, and it is not overly cumbersome to perform this analysis. Depending on where the VC firm is in the cycle, startup leaders can get a pretty good sense of the firm’s strategy and performance, which will of course influence whether or not to pursue an investment from it. Here is a brief look into how one can evaluate an investor using the VC life cycle:
Due diligence is a cumbersome albeit integral step for many business transactions. Although it is a lengthy and detailed ordeal, the process really boils down to sharing a ton of documents for others to scrutinize so that they have a solid understanding of what it is they are gaining from the deal. Some document requests may seem odd, but those in charge of the due diligence investigation have to review just about everything imaginable, as there are a lot of different things that have the potential to jeopardize a company. Here are the most vital documents for fundraising due diligence: