6 Reasons M&A Deals Fail

Merging with, or acquiring, another entity is always going to be a risky venture no matter how extensive the negotiations and due diligence process are. As with any major purchase, issues may not be clear until after the fact, and a lot of things can happen once everything is already said and done that may end up destroying any potential value before it is even realized. Here are six common reasons that M&A deals fail:

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What Happens to Stock When a Company Gets Acquired?

It is fairly common for both small and large companies to merge with and acquire other firms to gain a competitive edge. Although mergers and acquisitions are often considered together, the end result is obviously slightly different. Mergers tend to occur when both companies are on more equal footing, and many of the attributes of each company are retained post-merger to maximize the results of the integration. On the other hand, acquisitions usually involve a larger company purchasing another company, with some aspects of the smaller company remaining and others likely being changed to suit the needs of the acquiring company.

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Tech M&A - How to Plan for A Successful Exit

Budding and seasoned entrepreneurs know that building a business from the ground up and then taking it public or selling it for a handsome sum is the ultimate end game. But, just because the desire and diligence are there does not mean that it will actually come to fruition. It can take months to years of strategic planning and perseverance before the pursuit of a viable exit plan is even a possibility. And, with such fierce competition in so many sectors, especially the tech world, taking the right steps to position your company for a well-timed exit will prove vital to the success of the process. Here are some ways to ensure that your company can implement a successful exit strategy:

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Pre-Money vs. Post-Money Valuation: The Key Differences

Valuation is an incredibly important yet quite complicated business concept. Even the savviest of entrepreneurs encounter some difficulty understanding valuation and the manner in which it is calculated. This is understandable given that there are various ways to come up with a business’s valuation, not to mention the fact that there are actually different types of valuation. In particular, the notion of pre-money valuation as contrasted with post-money valuation can be quite confusing. Although these types of valuation are essentially the same in that they describe a company’s overall value, they are simultaneously quite different as their impact on investors’ ownership interests varies. Here is a brief look at pre-money valuation as compared to post-money valuation and how the two similar yet not so similar valuation concepts differ.

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How Frequently Does a Business Valuation Need to be Performed?

A business valuation may be performed at some point in a company’s existence for various reasons. In some cases, a business may simply wish to understand its value, but for the most part, there will be a specific reason that the valuation analysis is sought. It often relates to investment decisions, exit planning strategy, a potential sale or buyout, or because of an impending IPO.

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6 Common Questions Venture Capitalists Ask

Startup founders know that sourcing and then actually getting an infusion of venture capital can be quite a feat. The economic climate is always in flux, as is the nature of the competitive landscape. As a result, startup founders must do their research before approaching any potential venture capitalists (VCs). It is essential to know the type of businesses the VCs tend to invest in and how well those ventures are faring to ensure the right avenue is pursued. Of course, startup leaders must also be aware of the expectations and requirements the VCs will have, so that they can be well prepared in advance. VCs will no doubt have a ton of inquiries, and if things progress, a lot of concrete data will be requested and scrutinized. Here are some common questions startup leaders must be prepared to answer:

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5 Tips to Make a Stellar First Impression When Meeting With Investors

Startup founders know that securing funding early is critical to a company's long term success. As a result, there is a lot of pressure and stress when seeking investors and participating in fundraising rounds. Company leaders must ensure that they are completely prepared before diving in head first, so here are some tips to make a stellar first impression:

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4 Business Sale Deal Killers

Companies buy and sell all or part of other businesses on a pretty regular basis, but getting through the sales process isn’t always easy to do. There are plenty of times throughout the life of the transaction that things can easily go wrong, from the very initial discussion to sitting at the closing table itself. Although there are a lot of different reasons that the transaction may fall apart unexpectedly, there are some deal killers that pop up more often than others. Here are four ways a business sale can get derailed:

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Your Business Exit Plan for 2017

There is buzz that the economy is going to keep improving this year, and a good amount of merger and acquisition activity is anticipated. In light of the economic optimism, this may be a good year to consider making some changes to your business. Perhaps you have been gearing up to take your private company public or maybe you are even considering selling the business altogether. A lot of entrepreneurs begin to plan their exit strategy when they are just getting the business off of the ground, but plenty of others may not think that far out for fear of getting ahead of themselves. Regardless of where you and your team are in the thought process, it is always wise to create an exit plan at least several months in advance, although longer is ideal, to ensure it is executed to your satisfaction. Here are key things to consider when creating a business exit plan for this year:

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The Top 5 Most Valuable Startups of the World

The entrepreneurial spirit is alive and well in the U.S. and abroad. And, with the continued success of many well-known and plenty of other not as well-known startups reaching valuations worth billions or tens of billions of dollars, that eager drive to innovate surely will not dissipate any time soon. Granted, for every startup that manages to do well, there are countless others that do not have such luck. But, this should not deter anyone with a good idea, solid financial backing, and a willingness to work hard. Here are 5 of the most valuable and unstoppable startups currently making headlines:

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