Tuck-in and bolt-on acquisitions typically occur when a larger, private-equity backed entity absorbs a smaller one during M&A activity, often in an attempt to gain specific skills or product capabilities or an expanded market. While the two acquisition types are similar on the surface -- and many people use the terms interchangeably -- slight differences in intent and the way the acquired assets are treated can be seen between tuck-in and bolt-on transactions.Read More
As other economic factors continue to stabilize after devastating drops during the early aughts, trends in private equity investment continue to trend up slowly over time. Venture capital investments, for example, rose from around $15.59 billion in the United States in 2002 to approximately $71.94 billion in 2017. Typically, these are investments in startups and young, innovative brands, but larger target companies also continue to see investor interest. In these cases, it's more likely specialty investors with the right resources are interested in providing either growth capital or buyout capital.Read More
Mergers and acquisitions involve an enormous effort and spend every year -- upwards of $2 trillion in the United States annually -- but throwing money at the transaction doesn't make it successful. According to the Harvard Business Review, between 70 and 90 percent of all M&A activity fails. HBR points the finger for these failures, at least partially, at poor research and due diligence.Read More
It's rarely the case that mergers and acquisitions are as simple as either of the two parties would like. Even when both companies agree to perform the transaction, they still "compete" to make sure that their interests will be preserved once the deal has finished.
Whether you've just started considering selling your business or you're currently in the midst of a merger, we could all use a refresher on the different types of M&A transactions. Below, we'll go over each of the three most common structures for M&A transactions: asset purchases, stock purchases, and mergers.Read More
Lawyers play a critical role in a number of different business transactions. Some lawyers have highly specialized skills in one particular facet of the law, whereas others serve in a more general capacity. Given the complexity and impact of mergers and acquisitions (M&A), there are many lawyers whose practice is entirely devoted to these sorts of deals. It takes a lot of hard work and oversight to ensure that a deal runs smoothly and closes in a timely fashion, so hiring seasoned counsel for M&A is an absolute necessity. Here is what an M&A lawyer will do:Read More
The lure of initial public offerings (IPOs) can be tempting and an exciting time. Businesses can benefit from the increased capital, market exposure, and growth potential, but there are risks. Companies lose their privacy when they go "public". On the other hand, taking businesses private can save money but can decrease the capital that a business needs. Before going public or private, businesses should weigh the pros and cons thoroughly.Read More
Merging with and acquiring other entities is often a smart strategy to access new markets, expand product lines, and capitalize on cumulative resources. But, a deal that looks good on paper does not always translate well in reality. A lot of M&A deals have floundered post-closing because of misplaced focus or unrealistic expectations. Granted, no one can ever be sure whether the merger will succeed after things are all said and done, but there are some important items to consider before moving forward. In many cases, it is the seller who comes out on top, as they usually reap the financial rewards without having to deal with much of the aftermath. Here is a down and dirty framework for assessing a prospective merger or acquisition:Read More
Moving sensitive business information online from its paper form just got easier. SecureDocs, a virtual data room used by companies across the world to securely store and share critical business documentation, has announced an integration with Fujitsu ScanSnap through the ScanSnap Cloud. This partnership makes it easy for SecureDocs users to quickly move hard copy signature documents, and others documents of importance, into SecureDocs utilizing a Fujitsu ScanSnap Scanner.Read More
Merging with another company is a great business accomplishment and a momentous event, which means that it's highly important for you to do it the correct way. There are countless types of mergers--horizontal, vertical, conglomerate, and concentric, just to name a few--so you need to be familiar with the appropriate terms and concepts well in advance.
This article will discuss three different types of mergers: forward, forward triangular and reverse triangular. By learning the key differences and advantages of each one, you'll be able to decide for yourself which option is right for your organization.Read More
For many companies, undergoing an audit and/or financial due diligence will likely be an inescapable reality at some point in their existence, and the idea of undergoing either arduous process is no doubt rather daunting. Granted, they are quite different processes, but they both involve fairly substantial scrutiny of a company’s finances. This can obviously shed a lot of light on how a company is doing, but it can also bring up some unexpected issues and may force a company to have to make some pretty tough decisions. Here is a brief rundown on the primary differences between an audit and financial due diligence:Read More